Written by Surin Murugiah of theedgemalaysia.com
Wednesday, 29 December 2010 07:00
KUALA LUMPUR: The FBM KLCI is likely to extend its gains on Wednesday, Dec 29, as sentiment is underpinned by the overnights gains on Wall Street despite the mixed close in key regional markets.
The Dow and S&P 500 rose in light trading on Tuesday, extending December's rally, as cold weather in the Northeast lifted oil prices and energy shares, according to Reuters.
The Dow Jones industrial average was up 20.51 points, or 0.18 percent, at 11,575.54. The Standard & Poor's 500 Index was up 0.98 point, or 0.08 percent, at 1,258.52. The Nasdaq Composite Index was down 4.39 points, or 0.16 percent, at 2,662.88.
On Tuesday, Asian markets in general were flat, with shares in Japan and China easing as concern that further Chinese monetary tightening would cool the engine of world economic growth overshadowed Japanese data that pointed to improving demand, according to Reuters.
The Shanghai Composite Index slumped 1.74%, Hong Kong's Hang Seng fell 0.93% while Japan's Nikkei 225 lost 0.61% to 10,292.63. BIMB Securities Research said this was due to the fact investors were less than convinced that China's move to raise its interest rate will be enough to curb inflation.
The FBM KLCI which earlier on Tuesday rose to seven-week highs, pared down its gains and closed 5.72 points higher at 1,517.44. Its intra-day high yesterday was 1,525.99.
Among the stocks to watch on Bursa Malaysia on Wednesday are DFZ CAPITAL BHD [], SUNWAY CITY BHD [] (SunCity), JAKS Resources Bhd, COUNTRY HEIGHTS HOLDINGS BHD [] (CHHB) and BERJAYA LAND BHD [].
Esmart Holdings Bhd has launched a RM159.31 million takeover offer for DFZ Capital Bhd at RM3 cash a share. DFZ said on Tuesday, Dec 28 it had received a notice of mandatory takeover offer to acquire all the remaining 53.10 million shares of RM1 each not already owned. However, DFZ closed unchanged at RM3.60, which was much higher than the offer price.
SunCity's unit Asli Budimas Sdn Bhd (ABSB) has proposed to acquire 2.82 million sq ft of land in Iskandar Malaysia which would provide it with an estimated gross development value of RM932 million when the land was fully developed.
JAKS' unit has secured a contract worth RM201 million for sub-structure works for a commercial development in Petaling Jaya from a related party.
CHHB will make an early full redemption of the 3% to 8% RM150 million redeemable secured bonds 1996/2011.
“The early redemption is funded by a friendly loan from Tan Sri Lee Kim Tiong @ Lee Kim Yew of RM84.45 million and a term loan from MALAYAN BANKING BHD [] of RM75 million,” it said.
The Selangor Turf Club (STC) has extended the deadline for Berjaya Land Bhd from Jan 19, 2011 to Jan 18, 2012 for the latter to fulfill the conditions for the proposed acquisition of a piece of land in Sungai Besi.