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Written by Joseph Chin of theedgemalaysia.com
Wednesday, 13 April 2011 07:57
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KUALA LUMPUR: After heavy losses in the past two trading days, investors could continue to be cautious on Wednesday, April 13, despite positive news from the Invest Malaysia conference.
External factors and some local political concerns over the Sarawak state polls due April 16, could restrain bargain hunting for oversold counters.
On Wall Street, U.S. stocks dropped on Tuesday on worries falling oil prices could set off a reversal in the high-flying energy sector, while Alcoa's leaner-than-expected revenue disappointed.
The Dow Jones industrial average was down 117.53 points, or 0.95 percent, at 12,263.58. The Standard & Poor's 500 Index was down 10.30 points, or 0.78 percent, at 1,314.16. The Nasdaq Composite Index was down 26.72 points, or 0.96 percent, at 2,744.79.
At Bursa Malaysia, stocks to watch include BERJAYA SPORTS TOTO BHD [], Handal Resources Bhd, Eastern & Oriental Bhd and FAVELLE FAVCO BHD [].
Two shareholders meeting will also be held on Wednesday where the Minority Shareholders Watchdog Group (MSWG) plan to raise several questions to the board of directors.
Land & General Bhd’s EGM will be at the Sri Damansara Club, KL at 10am. The company proposes to acquire 10 parcels of land with 27-hole golf course and clubhouse and several plots of vacant land in Seremban for RM25 million. MSWG said the proposed acquisition is a related party transaction involving at least four directors on the board and major shareholders.
MSWG plans to raise questions on the proposed plan for development of the parcels of land, gross development value and gross development profit.
MSWG also plans to question the valuation that was performed by a partner to the vendor (holding 7.28%). Did the board obtain any independent valuer unrelated to the vendor?
OSK HOLDINGS BHD [] AGM will be at Plaza OSK, KL at 2.30pm. MSWG to raise questions about the reasons for the allowances of impairments losses on investments classified under Securities HTM of RM7.6 million and Securities AFS of RM38.7 million as disclosed in Note 37 on page 152 of the annual report. MSWG to also ask as the group loans and financing segment was the third biggest contributor, accounting for 23% of the group's pre-tax profit.
In 2010, OSK loans and financing segment achieved pre-tax profit growth of 40% to RM45.5 million. What are OSK's plans to expand this segment, especially since the group was able to amass substantial deposit base of RM4.5 billion?
The Edge FinancialDaily reports the gaming sector is in the spotlight once again, with the focus on Berjaya Sports Toto Bhd (BToto).
According to a Reuters report, tycoon Tan Sri Vincent Tan was mulling the sale of a 49% stake in BToto's unlisted numbers forecast operator (NFO) for about US$1 billion (RM3.03 billion).
ExxonMobil Exploration and Production Malaysia Inc has extended Handal Resources Bhd’s contract to provide crane services for a further one year, from May 1 to April 30, 2012.
Its unit Handal Offshore Services Sdn Bhd had received an extension of contract which it said would contribute to the group’s earnings for the financial year ending Dec 31, 2011.
The contract was initially awarded to Handal Offshore in May 2006 for a five-year term expiring in April 2011.
Eastern & Oriental Bhd has received the Penang Government’s in-principle approval for its master plan to undertake a mixed integrated project on a proposed reclaimed site on the island.
The company said the approval was for the development on the site, which is to be reclaimed under phase two of its Seri Tanjung Pinang in Tanjong Tokong, Penang.
Favelle Favco Bhd’s units have secured contracts worth a combined RM89.5 million for the supply of four offshore cranes.
Favelle Favco Cranes Pte Ltd was to supply Keppel Fels Ltd with an offshore crane, which was expected to be delivered from end 2011 to early of 2012.
MAH SING GROUP BHD [] is buying nine parcels of land in Tanjung Kupang, Johor Bahru measuring 205.72 acres for RM54.7 million for an industrial park.
The land was acquired at about RM6.10 per sq ft and it plans to develop into an integrated industrial and business park named Mah Sing i-Parc.
“Based on preliminary plans, Mah Sing i-Parc will comprise semi-detached factories, detached factories and shop offices with an estimated gross development value of approximately RM610 million,” it said.