Karambunai, Jetson, Muhibbah, glove makers, Integrax


Written by Joseph Chin
Wednesday, 20 October 2010 07:49

KUALA LUMPUR: Key Asian markets will come under pressure on Wednesday, Oct 20 due to external factors from the US and also China’s surprise first rate hike since 2007.
On Wall Street, US stocks posted their biggest loss in two months on Tuesday on fears banks might be on the hook for billions of dollars in souring mortgage bonds, according to Reuters. The broad selloff came on high volume in a pattern similar to last week's when fears over banks surfaced.
The Dow Jones industrial average dropped 165.07 points, or 1.48%, to 10,978.62. The Standard & Poor's 500 Index lost 18.81 points, or 1.59%, to 1,165.90. The Nasdaq Composite Index fell 43.71 points, or 1.76%, to 2,436.95.
The S&P 500 fell the most since mid-August when equities were in a steep selloff. The index closed below its 10-day moving average, which some traders see as a bearish sign.
China, the engine of growth in an anemic global recovery, raised interest rates by 25 basis points for the first time since 2007 to curb its booming economy.
At Bursa Malaysia, stocks will come under selling pressure due to the weakening external factors. While investors’ sentiment is expected to be jittery, they should focus on companies where there is strong management direction to grow.
They should instead view any sell-down to pick up stocks with strong growth stories and management.
Stocks to watch include those related to Malaysian tycoon Tan Sri Dr Chen Lip Keong which are Karambunai Corp Bhd, Petaling Tin Bhd and FACB Industries Bhd. Also in focus would be Kumpulan Jetson Bhd, Muhibbah Engineering Bhd, glove makers and Integrax .
The Edge FinancialDaily reports on Wednesday that investors have flocked to shares of Chen's flagship Malaysian entity Karambunai Corp Bhd after the government announced plans last month at the Economic Transformation Programme for a proposed 500-acre "eco-nature" resort in Kota Kinabalu, Sabah.
Although the government has yet to disclose the name and area of where the integrated resort would be in Kota Kinabalu, many believe that Karambunai Corp is likely to be a beneficiary from the proposed project.
In Jetson, a rival faction led by managing director Datuk Teh Kian An has initiated a requisition notice for an EGM to remove a board member, seen as a proxy to another camp led by the Naza brothers.
Jetson said it had received the requisition notice and another special notice of intention to remove Chow Chee Kin from the board of the construction outfit.
Jetson shareholders seeking the EGM to remove Chow are Adiljaya Sdn Bhd, Citigroup Nominees (Tempatan) Sdn Bhd (pledged securities account for Tee Chee Beng), Teh Kian An, Leng Ah Chu, Tee Chee Beng, Tee Keng Kok, K. K. Tee Holdings Sdn Bhd, Teh Tiong, Teh Siow Wee and Citigroup Nominees (Tempatan) Sdn Bhd (pledged securities account for Teh Kian An).
Muhibbah Engineering has secured a RM205.8 million contract from Putrajaya Holdings Sdn Bhd to design and build as well carry out external works at the federal administrative centre in Putrajaya.
The contract was expected to commence this year and be completed in the year 2013.
Handal Resources Bhd’s unit Handal Offshore Services Sdn Bhd has received an extension of contract from Talisman Malaysia Ltd to provide crane maintenance contract for PM-3 CAA & PM-305.
Chief executive officer and managing director Mallek Rizal Mohsin said the contract was expected to improve the company’s earnings for the financial year ending Dec 31, 2010.
The Malaysian Rubber Glove Manufacturers’ Association (MARGMA) has advised its members to increase and adjust prices to be in tandem with high raw material costs and continued weakening US dollar.
MARGMA president KM Lee said on Tuesday, Oct 19, most rubber glove manufacturers had started raising prices of their products to reflect the increasing raw material costs and the weakening of the US dollar.
“If the orders forthcoming do not match the glove price requested, glove makers have no choice but to reduce the output,” said Lee.
Bursa Malaysia Securities Bhd has issued a notice to Stamford College Bhd to delist the company after it had rejected the company's proposed regularisation plan.
The company had received a notice to show cause on de-listing and it was given five market days on or before Oct 25 to make a written representation to Bursa Securities as to why it should not be delisted.
Integrax announced on Tuesday its unit, Integrax Philippines Inc, which owns 20.01% of Platinum Group Metals Corporation, has entered into a conditional share purchase agreement to dispose of the entire stake in PGMC to Lin Ou Wen, a Chinese individual, for a total consideration of US$13.96 million.
In another development, the transshipment services agreement between Integrax’s 80% owned Lekir Bulk Terminal Sdn Bhd and Vale International SA had lapsed. This would have provided recurring revenue for Lekir.