Stocks to Watch Index-linked stocks, Linear Corp, Green Packet, LBS, Berjaya, Pan Malaysia Capital

Personally I like YTL-WR.

Business & Markets 2012

Written by Ho Wah Foon of theedgemalaysia.com

Friday, 05 October 2012 00:00

KUALA LUMPUR (Oct 4): Based on the news that the government is planning to reduce corporate tax in the near and medium term, the stock market may attract buying interest. If this happens, the FBM KLCI could hit a new high after breaking its record on Thursday.

For the index-linked stocks that had risen sharply on Thursday due to buying by local institutional funds ahead of the general election, there could be profit-taking if traders prefer to lock in gains.

And based on the stock exchange announcements on Thursday, the stocks that may attract trading interest include LINEAR CORPORATION BHD [], GREEN PACKET BHD [], LBS BINA GROUP BHD [] and BERJAYA CORPORATION BHD [].

Linear Corp on Thursday announced that Bursa Malaysia had on Thursday rejected its proposed regularisation plan.

The company has received a letter from Bursa Malaysia stating that the trading in the securities of the Company will be suspended with effect from Oct 12.

In addition, the securities of the company will be delisted on Nov 7 unless an appeal against the rejection of the regularisation plan and de-listing is submitted to Bursa on or before Nov 3.

Green Packet announced that its substantial shareholder SMALLCAP World Fund Inc had sold down its stake in the company to 5.01%. From Sept 28 to Oct 2, the fund disposed a total of 763,000 shares at prices of 42 sen and 43 sen.

LBS Bina told Bursa Malaysia its controlling shareholder, the Lim family, had bought a total of 740,000 shares from the open market over three days from Oct 2 to Oct 4. No price was stated.

As Swiss-based Credit Suisse Group AG has emerged as a substantial shareholder of Berjaya Corporation Bhd with a stake of 5%, Berjaya – normally shunned by institutional funds but played by retail speculators – could come into the spotlight.

Businessman Tan Sri Khoo Kay Peng, who has been buying MALAYAN UNITED INDUSTRIES BHD [] shares from the open market, had also been buying shares in PAN MALAYSIA CAPITAL BHD [] (PMC).

According to a filing, Khoo’s Bahtera Muhibbah Sdn Bhd bought 7.06 million PMC shares from the open market between Sept 28 and Oct 3 at undisclosed prices. This raised Khoo’s deemed interest in the company to 370.13 million shares. This is about 45.39% of PMC’s share base