Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Wednesday, 19 June 2013 19:44
KUALA LUMPUR (June 19): Based on news flow and announcements today, the stocks to watch tomorrow may include index-linked stocks, MISC, MRCB, Eversendai, MAS, MBSB, Symphony and Kulim.
Index-linked stocks, which have tracked the global markets, are likely to react to the outcome of the US Federal Reserve meeting expected late tonight. Globally, markets are awaiting for clues whether the US will scale down its Quantitative Easing exercise.
The benchmark FBM KLCI is likely to rise if the US Fed allows the current bond-buying to continue. But any indication of scaling this down will dampen market sentiment. The KLCI closed flat today.
MISC BHD [] is optimistic of recording better earnings and emerging stronger this year, amid difficult operating conditions in the shipping industry.
President/Chief Executive Officer Datuk Nasarudin Md Idris said the company would embark on consolidation this year to optimise cost and rebalance its
portfolio and income mix, Bernama reported.
"The bearish years that we had in 2011 and 2012 were largely due to the provisions we made with our exit from the liner container shipping business," he told reporters after the company's AGM here today.
He said following the exit from the container shipping business in June last year, "things should stabilise and be better".
For the financial year ended December 31, 2012, the company posted a pre-tax profit of RM1.6 billion, up 89% from RM845.1 million recorded in 2011.
MALAYSIAN RESOURCES CORP []oration Bhd (MRCB) may see its share price fluctuating, depending on the outcome of its EGM tomorrow to decide on MRCB-Nusa Gapurna merger.
The Edge Weekly on Saturday reported that an official letter had been sent out by the Selangor State Development Corporation (PKNS) expressing its disagreement to the MRCB-Nusa Gapurna deal.
PKNS is instead looking to exercise an option to buy out Nusa Gapurna's 70% interest in the RM3 billion PJ Sentral mixed development. PKNS has a minority 30% stake in the PJ Sentral.
The key reason is that PKNS is not getting a good deal, according to the Edge Weekly.
But at the same time, there is a positive news for MRCB. MRCB Southern Link’s sukuk ratings have been upgraded by RAM.
RAM Ratings said today it has upgraded the respective long-term ratings of MRCB Southern Link Bhd’s Senior and Junior Sukuk to BBB3 and BB1 (from C3 previously in both) due to improved liquidity after getting government payments.
But the ratings have been put on Rating Watch, with a developing outlook.
“The upgrade is premised on the timely receipt of monthly payments of RM11 million each from the government to date, subsequent to the execution of an Interim Agreement on Nov 27, 2012,” RAM stated.
Eversendai Corporation Bhd has tendered for RM8 billion worth of projects, which include the oil and gas sector.
Executive chairman, Tan Sri AK Nathan, told reporters today that new projects are targeted at regions such as Kazakhstan and Eastern Africa
Nathan added that the group is also looking at expanding its marketing offices in Singapore and Australia.
Malaysia Airlines (MAS) aims to strengthen ties with six new code share partners by next year.
Vice-President (Government and Industry Relations) Suresh Singam said MAS currently had 24 code share partners and is looking at six more, mainly
from Europe, the Middle East and Southeast Asia.
"These partnerships will provide our customers better rates and services," he told reporters after the opening of the Oneworld roadshow here today. The roadshow was being organised with Oneworld alliance.
Suresh said by joining the Oneworld alliance, MAS had seen the interline performance with other Oneworld members grow more than 60% between January and April this year.
MALAYSIA BUILDING SOCIETY BHD [] (MBSB) is not in a hurry to obtain a banking license from Bank Negara Malaysia but is preparing to be a full-fledged bank, said its president and chief executive officer Datuk Ahmad Zaini Othman.
"The biggest issue now is to get ready (to be a full-fledged banking institution)," he told reporters after launching the company’s coffee table book.
Symphony Life Bhd board has proposed to declare payment of first and final dividends for the year ended March 31, 2013, in the following way:
1) Dividend of 3.0 sen per ordinary share less Malaysian Income Tax of 25%; and
(2) Dividend-in-specie by way of distribution of share dividend on the basis of one treasury share of the company for every 20 existing ordinary shares of RM1.00 each held in the company.
In its filing to Bursa Malaysia, Symphony said fractional of a share arising from the dividend-in-specie will be disregarded.
Kulim (Malaysia) Bhd announced that Bursa Malaysia Securities Berhad has approved its request for suspension of trading in the securities of the company from 9.00 am until 12.30 pm tomorrow.
“The request for suspension is in view of the pending release of an announcement relating to a material corporate exercise,” the company said.