Written by Surin Murugiah
Tuesday, 26 October 2010 06:03
KUALA LUMPUR: Stocks on Bursa Malaysia are expected to climb on Tuesday, Oct 26, underpinned by the 5-1/2 month high closing on Wall Street overnight.
Reuters reports US stocks climbed on Monday as a falling dollar, partly driven by expectations of further stimulus by the Federal Reserve, prompted investors to buy riskier assets.
The Dow Jones industrial average gained 31.49 points, or 0.28 percent, to 11,164.05. The Standard & Poor's 500 Index added 2.54 points, or 0.21 percent, to 1,185.62. The Nasdaq Composite Index advanced 11.46 points, or 0.46 percent, to 2,490.85. The benchmark S&P 500 index ended at its highest since May 3.
Goldman Sachs said the Federal Open Market Committee is almost certain to announce renewed monetary easing at its Nov. 2-3 meeting.
At Bursa Malaysia, stocks to watch include Perwaja Holdings Bhd, PLUS EXPRESSWAYS BHD [], GLOMAC BHD [] and MTD CAPITAL BHD [].
Perwaja is building the first concentration and pelletising plant to produce iron ore pellets in Malaysia at a cost of RM201.54 million in Kemaman, Terengganu.
The proposed plant will be near Perwaja’s existing direct reduction plant is located, will have an annual production capacity of up to 1.2 tonnes and is to strengthen its position as one of the leading upstream steel producer in Malaysia.
UEM Group Bhd and the Employees Provident Fund (EPF) extend the acceptance deadline of the Offer Letter to acquire PLUS Expressways Bhd from 5pm on Oct 29, 2010 to 5pm on Nov 9 this year.
PLUS said the offer would immediately lapse at 5pm on November 9 unless UEM and EPF agree in writing to extend the offer period.
On Oct 15, PLUS received an offer from UEM and the EPF as joint offerors to acquire all its business and undertakings , including assets and liabilities for RM23 billion or RM4.60 per share cash.
Glomac is acquiring 18 units of apartments at the Suria Stonor Condominium project for RM38.41 million.
Glomac unit Berapit Pertiwi Sdn Bhd had agreed to the acquisition with Dekad Darat Sdn Bhd and Progressive Berg Sdn Bhd as it viewed the apartments had an excellent investment opportunity with strong potential for quick turnaround.
MTD Capital resumes trading after it was suspended from 9.45am on Monday at the company’s request pending a material announcement.
The company said the material announcement was on the official judgment from the Supreme Court of Philippines pertaining to the Temporary Restraining Order (TRO) on South Luzon Toll Expressway (SLEx).