Stocks To Watch Armanda, TA, MBSB, Aeon Credit, AMMB, CPIB, Luster, Eastland, Compugates.

Business & Markets 2013
Written by Ho Wah Foon of   
Friday, 05 July 2013 20:34

KUALA LUMPUR (July 5): Based on news flow and corporate announcements today, companies that may attract interest on July 8 could include Bumi Armanda, TA Enterprise, MBSB, Aeon Credit, AMMB, CPIB, Luster, Eastland and Compugates.

Bumi Armada Bhd announced that BAC LLC, its unit, has entered into a supplementary agreement to the existing contract with OOO LUKOIL-Nizhnevolzhskneft for an additional EPIC works (40 km of additional pipelines) on a lump sum basis. 

The total price payable for the additional EPIC works is RM567.6 million (USD178.5 million), Armanda said in a filing with Bursa Malaysia.

LUKOIL is a major international oil and gas company and one of the biggest Russian oil business groups.

These additional works are expected to contribute positively to the revenue and earnings of Bumi Armada for the financial year ending 31 December 2013 and the financial periods thereafter, the company said.

TA ENTERPRISE BHD [] managing director Datin Alician Tiah declared today the company is not selling its stockbroking business as speculated in the market.

"Definitely, there have been a lot of interests shown by different companies and a lot of informal overtures have been made. But no, it's not true (we are going to sell TA Securities)," said Datin Alicia Tiah.

As the share price of TA Enterprise has run up in the past one month, it may come under pressure after Tiah denied the rumour openly.

Speaking to the media after the annual general meetings of TA Enterprise and TA Global Bhd, Tiah noted the company had issued a statement to the stock exchange on June 11 to dispel the rumours.

However, Tiah said she would definitely consider divesting TA's stockbroking business if she was offered with a price that "I cannot resist".

A company insider told this writer that the company is open to selling TA Securities. It is only a matter of setting an attractive price.

MALAYSIA BUILDING SOCIETY BHD [] (MBSB), Aeon Credit Services Bhd and other financial institutions which have plans to give out loans with long tenures may be hit by the latest guidelines implemented by Bank Negara Malaysia (BNM) today.

In a statement, BNM announced the implementation of a new set of measures aimed at curbing excessive household indebtedness and to reinforce lending practices by key credit providers.

These measures, to take effect immediately, are:

* Maximum tenure of 10 years for financing extended for personal use;

* Maximum tenure of 35 years for financing granted for the purchase of residential and non-residential PROPERTIES [];

* Prohibition on the offering of pre-approval personal financing products.

These measures apply to banks and development financial institutions under the regulatory oversight of the central bank.

AMMB HOLDINGS BHD [] announced that its subsidiary, AmBank, has obtained the approval of the Securities Commission to set up a Euro Medium Term Notes Programme of up to US$2.0 billion.

“The net proceeds from the proposed Programme of up to US$2.0 billion in nominal value will be utilised by AmBank for its working capital, general funding requirement and other corporate purposes,” AMMB said in its filing with Bursa.

The programme is not expected to have any material effect on the earnings of AMMB, it said.

CB INDUSTRIAL PRODUCT HOLDING [] Bhd (CBIP) announced that AVP Engineering (M) Sdn Bhd, a 51% owned subsidiary, has received a job award from the Ministry of Housing and Local Government Malaysia.

The award is to install and commission 100 units of 4x2 Prime Mover vehicle attached with water tank trailer, engine and fire fighting equipment to the Fire and Rescue Department of Malaysia.

The company informed Bursa that the award is expected to contribute positively to the earnings of CBIP for the financial years ending 31 December 2013, 2014 and 2015.

However, no sum was mentioned about the award in the filing by CBIP.

LUSTER INDUSTRIES BHD [], which has been one of the top active stocks in recent weeks, informed Bursa that its substantial shareholder Wee Siew Heng had disposed of 21.51 million shares on June 28.

As a result of his shareholding falling below 5%, he is no longer a substantial shareholder.

The share of Luster had risen on misguided reports in May through to June. It only began to fall after hitting a high of 24 sen on June 17 when all rumoured positive news did not materialise. It ended flat at 10.5 sen today.

Luster is involved in the manufacture of high precision plastic parts and components.

Its share price had also rallied on speculations that a company linked to Tan Sri Syed Mokhtar Al Bukhary could possibly be Luster Industries Bhd's technical partner in the Kuala Muda port development project.

Eastland Equity Bhd, which was slapped with a UMA (unusual market activity) query by Bursa Malaysia for its sudden and sharp surge in share price today, replied to the stock exchange that it had held negotiations with several parties to jointly develop a piece of land in Kota Bahru, Kelantan.

In addition, the company also plans to undertake a private placement.

At market close today, Eastland share rose 30.5 sen or 57% to end at 84 sen. Earlier in morning trades, it hit limit up on thin trades.

COMPUGATES HOLDINGS BHD [] informed Bursa that its unit Compugates Sdn Bhd has been appointed by YTL Digital Sdn Bhd as a distributor to market, distribute and provide distribution of Yes Products and related devices for dealers within Peninsular Malaysia.

The appointment is for a period of two years from 1 July 2013, which may be extended for one year.

The appointment is expected to contribute positively to Compugates’ earnings for the financial year ending 31 December 2013, the company said.