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MONDAY will go down liao, need to be careful liaooooooo following downgrade of S&P on france
Written by Joseph Chin of theedgemalaysia.com
Saturday, 14 January 2012 09:01
KUALA LUMPUR (Jan 14): Key regional markets including Bursa Malaysia are likely to start off the new week on Jan 16 on a cautious note as the eurozone crisis drags on.
The latest move by Standard & Poor's to downgrade the long-term ratings on nine eurozone sovereigns will weigh on market sentiment.
S&P stripped France of its top AAA rating and downgraded of half the nations in the euro zone, which Reuters reported might complicate European efforts to solve a two-year old debt crisis.
“In our view, the policy initiatives taken by European policymakers in recent weeks may be insufficient to fully address ongoing systemic stresses in the eurozone,” said S&P.
On Wall Street, stocks dropped on Friday, snapping a four-day winning streak on the downgrade.
The Dow Jones industrial average fell 48.96 points, or 0.39%, to 12,422.06 at the close. The Standard & Poor's 500 Index lost 6.41 points, or 0.49%, to 1,289.09. The Nasdaq Composite Index fell 14.03 points, or 0.51%, to 2,710.67.
For the week, the DJIA rose 0.5%, while the S&P 500 advanced 0.9%, and the Nasdaq gained 1.4%.
Reuters reported that investors will look to earnings next week for insight on how the euro zone's debt woes may affect profits.
At Bursa Malaysia, stocks which could see trading interest are HIAP TECK VENTURE BHD [], MITRAJAYA HOLDINGS BHD [], FRONTKEN CORPORATION BHD [], CAN-ONE BHD [] and KIAN JOO CAN FACTORY BHD [].
Meanwhile, The Edge weekly reports in its latest edition that the Genting group's partnership with the state of New York - in a proposed US$4 billion development that would house the largest convention centre in the US - would give it an edge when it comes time to bid for a full-fledged casino licence.
Snack and confectionery manufacturer Cocoaland’s earnings recovered last year, whether the company can sustain its performance in the current financial year will depend on its ability to pass on the additional costs incurred in production to customers.
Hiap Teck Venture’s additional 354.14 million new shares under its rights issue with the 88.53 million warrants will be listed on Monday.
Mitrajaya’s unit has secured two contracts worth a total RM33.41 million from Putrajaya Holdings Sdn Bhd for CONSTRUCTION [] jobs in Putrajaya. Pembinaan Mitrajaya Sdn Bhd was awarded contracts to build houses and shop offices in Precints 11 and 8 in Putrajaya.
Frontken executive chairman and managing director Wong Hua Choon has disposed of his whole stake of 59.50 million shares or 5.8% stake.
Wong sold all the shares at 12 sen in two blocks to its German shareholder Jorg Helmut Hohnloser on Friday. Its net asset per share was 21 sen. Hognloser’s shareholding increased to 28.8% or 290.99 million shares after he acquired the shares.
Can-One and Kian Joo would continue to see trading interest on market expectations that Can-One would likely launch a general offer for KJCH after securing the 32.9% block.