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Written by Joseph Chin of theedgemalaysia.com
Monday, 09 January 2012 22:29
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KUALA LUMPUR (Jan 10): Stocks on Bursa Malaysia could see some positive bias on Tuesday, underpinned by the investors’ firmer sentiment across the broader market, with focus also on stocks with fresh corporate news.
Then again, the sentiment would also hinge on the outcome of the European meeting on Monday to tackle a debt crisis.
World stocks and the euro gained on Monday after last week's sell-offs, but worries over Europe's banks persisted and fears over demand for the region's debt at auctions due this week left riskier assets vulnerable to further losses, Reuters reported.
German and French leaders were meeting to discuss ways to boost growth in euro zone states struggling with a debt crisis and rising unemployment, and to finalize a deal to increase fiscal coordination within the currency union.
At Bursa Malaysia, the market was weaker in early trade on Monday before putting up a stronger performance in the afternoon, underpinned by external news and on-going corporate developments.
Among the stocks which could see trading interest are LPI CAPITAL BHD , PROTON HOLDINGS BHD , DRB-HICOM BHD , KUMPULAN HARTANAH SELANGOR BHD  (KHSB), Xidelang Holdings Ltd and CAN-ONE BHD .
LPI Capital Bhd reported a 6.5% increase in net profit to RM39.33 million for the fourth quarter ended Dec 31, 2011 from RM36.94 million a year ago, boosted by the general insurance business.
LPI announced a second interim single tier dividend of 50 sen per share versus 45 sen a year ago.
DRB-Hicom Bhd has confirmed it has submitted a bid to acquire Khazanah Nasional Bhd’s 42.7% stake in Proton Holdings Bhd. DRB-Hicom said it had always viewed Proton as an important automotive industry player while some analysts said DRB-Hicom was the best bet for Proton.
Meanwhile, KHSB has confirmed its major shareholder KUMPULAN PERANGSANG SELANGOR  Bhd (KPS) has been given the mandate to enhance or revive its investments.
KHSB said that KPS was mandated by the board to explore and evaluate the available options, which may include a reorganisation and restructuring of its investments and mergers, acquisitions or divestments of its non-performing investments.
As for Xidelang, the company said its major shareholder HongPeng International Holdings Ltd does not have any plans to sell its stake.
Xidelang said it had made due and diligent enquiry with HongPeng which replied while it had been receiving enquiries from external parties including private equity firms, “but HongPeng has no intention of selling its stake at this juncture”.
Xidelang also said the discussions between Navis Capital and HongPeng held during October and November last year were solely exploratory in nature and there was no offer being made or a price range indicated by Navis Capital.
Can-One, whose share price has run up over the past three days, could see some pullback as investors take profit unless the company announces its plans to gain more control of KIAN JOO CAN FACTORY BHD . However, there could be some fightback by some Kian Joo shareholders.
Can-One had won the court tussle to buy the 146.13 million Kian Joo Can Factory shares held by Kian Joo Holdings Sdn Bhd after a Federal Court ruled in its favour last Thursday.
Can-One announced to Bursa Malaysia last Friday that the apex court had allowed its appeal to proceed with the completion of the acquisition of the 32.9% stake for RM241.11 million.