Stocks To Watch: Plantation firms, DRB-Hicom, Star, Boustead, Catcha Media, Perisai

Written by Ho Wah Foon of   
Friday, 12 July 2013 19:03

KUALA LUMPUR (July 12): Based on news flow and corporate announcements today, companies that may attract trading interest on Monday could include plantation firms, DRB-Hicom, Star Publications, Boustead, Catcha Media and Perisai Petroleum.

Plantation companies may react to the plunge of  crude palm oil (CPO) prices today.

Palm oil slumped the most in more than four months after the U.S. government increased estimates for the country’s soybean output and stockpiles before the next harvest, boosting the outlook for global oilseed supplies, Bloomberg reported.

At market close today, local CPO futures fell across the board on the derivatives market. The contract for September delivery fell 72 ringgit or 3% to RM2,300 per tonne, while all other futures contracts fell by RM46-RM72 per tonne.

Soybean reserves in the U.S., the biggest shipper, will total 295 million bushels (8 million tons) on Aug. 31, 2014, the US Department of Agriculture said in a report yesterday. That’s 11% more than the 265 million bushels forecast in June.

Output will jump to an all-time high of 3.42 billion bushels, more than the 3.39 billion estimated last month, the USDA said.

DRB-Hicom Bhd is buying a controlling 96.87% stake in aerospace component manufacturer Composites Technology Research Malaysia Sdn Bhd (CTRM) from the Minister of Finance Inc (MOF) for RM298.26 million cash in bid to diversify its business.

In a statement to the exchange, DRB-Hicom said the proposed acquisition price comprises RM122.06 million for the stake and RM176.2 million worth of outstanding loan owed by CTRM to the  government.

"The DRB-Hicom group's current core business includes the manufacture, supply, maintenance and marketing of land-based military vehicles.

"It is the group's intention to diversify its revenue stream from land-based defence business to other areas of defence which also includes aerospace," DRB-Hicom said.

DRB-Hicom said it has signed a share-sale agreement with the MOF today. The acquisition is due for completion by the first quarter of 2014.

Star Publications Bhd’s share may come under scrutiny following a bomb hoax at its Penang office.

Operations of the northern regional  headquarters of The Star Publications (Malaysia) Bhd was disrupted by a fake bomb threat earlier today, causing all staff to be evacuated for several hours.

The telephonist at the company's complex in Bayan Lepas received a call at about 9.50 am, a source told She then alerted the management, which then called the police.

The police ended the search by noon and allowed all staff to return.

Balik Pulau OCPD, Supt Mohd Hatta Mohd Zain, confirmed the incident to be a hoax.

Boustead Holdings Bhd and Al-Hadharah Boustead REIT Bhd shares will be suspended from trading next Monday (July 15) pending a material announcement, according to Bursa Malaysia filings.

Boustead has under its umbrella companies involved in properties, plantations, heavy industries, trading and industrial, investments and pharmaceuticals.

At market close, Boustead was up two sen or 0.38% at RM5.26 with 94,600 shares done.

Al-Hadharah shares closed one sen or 0.54% higher to settle at RM1.87 today. The counter had a trading volume of 326,100 units.

The Armed Forces Fund has stakes in both companies. It owns 61.82% of Boustead and 12.7% of Al-Hadharah, Bloomberg data showed.

Catcha Media Bhd announced it has inked an agreement to firm up a RM60 million merger to form one of the country’s largest digital advertising businesses.

In a statement today, Catcha Media said the final agreements with Youth Asia Sdn Bhd to merge certain assets with Says Sdn Bhd, the owner of has been formally signed.

It said the merger would result in one of the country’s largest digital advertising businesses by reach, clients and spend, and potentially revolutionise the way advertisers reach out to Malaysia’s populace.

Catcha Media’s chief executive officer (CEO) Patrick Grove said the future of digital marketing in Malaysia is going to be enormous.

Perisai Petroleum Teknologi Bhd said its unit’s contract with TL Offshore Sdn Bhd for the charter of  derrick lay barge has been extended.

The notice received from TL Offshore extends the duration of the charter for a fixed term from 1 July 2013 to 15 August 2013, and thereafter on a daily charter basis subject to a notice period of 21 days to precede the end of the charter.  

The daily charter rate for this extended term is US$60,000 a day.

The company said the extension is expected to contribute positively to the group's financial position for the current financial year and the financial periods thereafter should the charter be extended further.