Stocks To Watch Construction and healthcare stocks, MAS, Kinsteel, K. Logistik, P&O, Yinson.

Business & Markets 2013
Written by Ho Wah Foon of   
Monday, 17 June 2013 21:42

KUALA LUMPUR (June 17): Based on news flow and announcements, the sectors and stocks that might attract interest tomorrow include CONSTRUCTION [] and healthcare sectors, MAS, Kinsteel, K. Logistik, P&O and Yinson.

The construction/property sector may be excited by the announcement that the Land Public Transport Commission is proposing to the government to extend the Mass Rapid Transit (MRT) system to Putrajaya.

The second and third lines of the Mass Rapid Transit (MRT) system is expected to serve Putrajaya, MRT Corporation Sdn Bhd chief executive officer Datuk Azhar Abdul Hamid said today.

He said the Land Public Transport Commission is preparing a working paper with regard to the new lines to be presented to the government for approval.

"We are expecting good news (approval from the government) by year-end," Azhar told reporters after visiting MRT's centralised labour quarters.

He said the second line may ply between Sungai Buloh and Putrajaya but nothing has been finalised.

Healthcare and industrial sectors are sectors to be included into the investment portfolio of the Employees Provident Fund (EPF) this year.

Chief executive officer, Datuk Shahril Ridza Ridzuan, told reporters today that EPF is considering expanding its investment portfolio and the new sectors are healthcare and industrial, among others.

Currently, EPF's main contributors come from fixed income (Bursa Malaysia and government bonds), which account for 65% of its investment portfolio. The balance 35% comes from equities and others.

"We are looking at the sectors that are actually robust this time and not so dependent on economic cycles as we want to maintain our record in bringing stable returns to our depositors.

"Our target has always been to provide the real return, which is inflation plus two per cent," Shahril told reporters after the visit by Deputy Finance Minister Datuk Ahmad Maslan to EPF here today.

Malaysia Airline System Bhd (MAS) announced that Mohd Shahazwan bin Mohd Harris, an executive director in the investments division of Khazanah Nasional Bhd overseeing the Aviation sector, has become its director.

As of June 5, Khazanah – the country’s big investment arm – holds 11.59 billion MAS shares or about 69.37% stake in the state-controlled airline.

In its filing with Bursa Malaysia, MAS said Mohd  Shahazwan, 41, joined Khazanah in early 2005 as senior vice president, from the Boston Consulting Group where he had worked in the regional energy sector. Prior to that, he had also worked with PA Consulting and TENAGA NASIONAL BHD [].

KINSTEEL BHD [] announced that Tan Sri Pheng Yin Huah, its controlling shareholder and managing director, disposed of 1.5 million shares of Kinsteel on June 12 at undisclosed prices on the open market.

After the disposal, he has about 35.8 million shares or direct interest of 3.44% stake in the company and indirect holding of 364.15 million shares or 34.96%.

In recent months, Pheng has been paring down his shareholding. On June 10 and June 11, he had disposed of 410,000 shares and 900,000 share respectively.

On May 30, he sold 5 million shares and on Feb 4, he sold 400,000 shares.

In the first quarter this year, Kinsteel incurred a net loss of RM8.42 million, compared to a profit of RM10.27 million in previous corresponding quarter.

Kinsteel share ended flat at 33 sen per share today, compared to its net asset per share of 50 sen.

KONSORTIUM LOGISTIK BHD [], an integrated logistics service provider, is eyeing up to 10 per cent revenue contribution from its energy and infrastructure division over the next two years, its chairman Datuk Abdul Rahman Ahmad said.

The division, formerly known as the oil and gas division, contributed RM3 million or one per cent of the group's revenue in 2012.

Pacific & Orient Bhd, an insurer and information TECHNOLOGY [] firm, is diversifying into property development.

In a statement to the exchange today, Pacific & Orient said it has incorporated 100%-owned subsidiary Pacific & Orient PROPERTIES [] Ltd (P&OP) in the UK.

"P&O is currently dormant. The intended principal business of P&OP is investment, development and dealings in property," Pacific & Orient said.

YINSON HOLDINGS BHD [] has appointed Malayan

Banking Bhd, United Overseas Bank Ltd, Singapore and AmInvestment Bank to fund its proposed acquisition of the Norwegian listed company, Fred Olsen Production ASA.

In a statement today, Yinson said Maybank will be the financial adviser, UOB, facility and security agent, and Aminvestment Bank, the principal adviser.

Managing director, Lim Han Weng, said the acquisition cost of RM576 million will be satisfied by the borrowing from Maybank, UOB and AmInvestment of about RM400 million, with the balance of RM176 million to be funded via its proposed private placement, share issuance and internally-generated funds.

Yinson is one of Malaysia's premier integrated offshore services providers.