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Written by Joseph Chin of theedgemalaysia.com
Wednesday, 20 April 2011 08:12
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KUALA LUMPUR: Stocks may rebound on Wednesday, April 20 with the FBM KLCI expected to stage a recovery, underpinned by the government’s bold measures to drive the economy and also a firmer overnight close on Wall Street.
On Wall Street, encouraging results from health care and materials companies lifted U.S. stocks on Tuesday, but weak earnings from Goldman Sachs limited gains in a market sceptical of the growth outlook.
Reuters reported the Dow Jones industrial average gained 65.16 points, or 0.53 percent, to 12,266.75 at the close. The Standard & Poor's 500 Index added 7.48 points, or 0.57 percent, to 1,312.62. The Nasdaq Composite Index advanced 9.59 points, or 0.35 percent, to 2,744.97.
It said the market seemed to have moved past Monday's surprising announcement that Standard & Poor's was revising its outlook downward on the United States credit rating.
On Tuesday, Prime Minister Datuk Seri Najib Tun Razak said he expected 12 projects, including seven all-new projects to will bring about RM11.16 billion in investments, RM16.62 billion in gross national income (GNI) and 74,457 incremental jobs.
At Bursa Malaysia, stocks in focus include Ace Market-listed TRICUBES BHD [] will invest RM50 million in the next 10 years in the 1Malaysia email project.
The government has appointed Smartag Solutions Bhd as part of the security and trade facilitation system using radio frequency identification (RFID) for the Customs checkpoints throughout Malaysia.
On Tuesday, KARAMBUNAI CORP BHD [] and PETALING TIN BHD [] shares rose in active trade after the government announced the multi-billion ringgit Karambunai Integrated Resort City (KIRC) as a premier world-class ecotourism destination.
A consortium consisting of Prism Crystal Enterprises Ltd and Tan Sri Dr Chen Lip Keong & group of companies together with the landowner Karambunai and Petaling Tin will invest RM9.6 billion by 2020 to develop the resort city.
EMAS KIARA INDUSTRIES BHD [] has declared a special tax exempt interim dividend of 12 sen per 50 sen for the financial year ending Dec 31, 2011.
The dividend was equivalent to 24% per share and it would go ex on May 19. In November last year, Emas Kiara announced it was disposing of its business and subsidiaries for RM100 million to Tencate Geosynthetics Asia Sdn Bhd.
BERJAYA CORPORATION BHD []’s unit has appointed Ken Whittingham and Atle Crowe-Maxwell of PKF Australia Ltd receivers and managers of its self-service carwash company -- Carlovers Carwash Ltd (CCL) -- based in Australia.
BCorp said it would appoint the two as receivers and manager for CCL’s three units -- Carlovers Carwash (Aust) Pty Ltd, The Carwash Kings Pty Ltd and Carlovers (Maroochydore) Pty Ltd, to preserve its interest as a secured creditor of the CCL Group.
It said CCL was not a major subsidiary as defined in Bursa Malaysia Securities Berhad Main Market Listing Requirements.
“BCorp group’s unaudited carrying amount/net book value of the CCL Group as at Jan 31, 2011 is about RM400,000 whilst its original cost of investment in the CCL Group is about RM46.1 million. The amount has been substantially written down and impaired over the years,” it said.