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Written by Joseph Chin of theedgemalaysia.com
Tuesday, 26 April 2011 08:01
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KUALA LUMPUR: Stocks on Bursa Malaysia would see cautious trade on Tuesday, April 26 in line with key regional markets and after Wall Street fell on Monday.
A lowered outlook from Kimberly-Clark increased concerns about higher commodity costs squeezing profits in coming quarters, according to Reuters.
Kimberly-Clark fell 2.7 percent to $64.24 after it cut the low end of its full-year outlook because the costs of pulp and other goods rose more than twice as much as it had expected.
The Dow Jones industrial average dropped 26.11 points, or 0.21 percent, to end at 12,479.88. The Standard & Poor's 500 Index shed 2.13 points, or 0.16 percent, to 1,335.25. But the Nasdaq Composite Index gained 5.72 points, or 0.20 percent, to close at 2,825.88.
Meanwhile, Reuters also reported on further foreign inflows into Southeast Asian markets on Monday, continuing from late last week. Indonesia took in $25.2 million inflows, according to Thomson Reuters data. Malaysia added $12.3 million and Thailand gained $25.7 million, exchange data showed.
Stocks to watch on Tuesday include PADIBERAS NASIONAL BHD [] (Bernas), ViTrox Bhd, FORMIS RESOURCES BHD [], CB Industrial Product Bhd (CBIP), ALAM MARITIM RESOURCES BHD [], Masterskill Education Group Bhd, BERJAYA LAND BHD [] and Berjaya Spports Toto Bhd.
Bernas, which is the largest rice miller in Malaysia, has received a 10-year extension from Jan 11, 2011 to Jan 10, 2021 from the federal government.
Bernas had received a letter dated April 20 from the Public Private Partnership Unit under the Prime Minister’s Department on the extension of the Bernas agreement dated Jan 12, 1996.
It currently controls about 24% of the padi market and 45% of the local rice demand.
ViTrox has proposed to issue up to 77.50 million new shares on a one-for-two basis to increase the share capital base of the company to a level which will better reflect ViTrox’s current scale of operations.
The company said the proposed bonus issue would increase the issued and paid-up to RM23.25 million comprising 232.50 million shares.
Formis Resources’ 92.95 million free warrants will be listed and quoted from 9am, Tuesday, April 26.
The warrants were issued on the basis of one free warrant for every two shares held as at 5pm on April 18. The warrants are for five years and expire on April 19, 2016.
The strike price is RM1.10 per share on the basis of one warrant for every share held.
CB Industrial Product Bhd’s unit has secured a RM38.35 million contract from the Ministry of Health to supply 100 ambulances inclusive medical equipment to the ministry.
Its subsidiary AVP Engineering (M) Sdn Bhd had accepted the letter of award from the Ministry of Health.
Alam Maritim Resources Bhd’s unit has entered into two charter party agreements for a total sum of RM24.75 million.
Masterskill Education Group Bhd’s Kota Bharu campus has been granted approval for a new programme, namely Foundation in Health Sciences, by the Ministry of Higher Education.
Berjaya Land Bhd’s units disposed of 22.76 million BERJAYA SPORTS TOTO BHD [] (BToto) shares for RM101.821 million or at an average selling price of RM4.47.
It said on Monday, April 25 the shares were disposed of by Immediate Capital Sdn Bhd and Gateway Benefit Sdn Bhd in the open market from May 3, 2010 to April 25, 2011.
“The disposals resulted in a net loss of about RM6.07 million at the BLand group level,” it said. The disposed shares represented 1.70% equity interests in BToto.