Stocks To Watch BIMB, Digistar, Asdion, KLK, MY E.G.

Business & Markets 2013
Written by Chong Jin Hun of   
Monday, 02 September 2013 19:27

KUALA LUMPUR (Sept 2): Based on Bursa Malaysia announcements and news flow today, stocks to watch tomorrow (Sept 3) may include the following companies :

Bank Negara Malaysia (BNM) has rejected BIMB HOLDINGS BHD []'s plan to issue Islamic bonds using Bank Islam Malaysia Bhd's shares as security for the debt instrument.

BIMB said while BNM has no objection to BIMB's proposed acquisition of the remaining 49% in Bank Islam, the central bank has, however, noted that the proposed charge over Bank Islam shares held by BIMB as security for the proposed sukuk "cannot be considered by BNM".

Digistar Corp Bhd has secured an 18-year government concession to build, manage and lease the proposed Malaysian National TECHNOLOGY [] Advancement Centre in Alor Gajah, Melaka.

Digistar, a broadcasting technology specialist, said its subsidiary Indera Persada Sdn Bhd (IPSB) had on March 18 this year entered into the concession agreement with the government, specifically, the Works Ministry.

Digistar said the concession which has been effective since last Friday (August 30) gives IPSB the right and authority to plan, design, construct, and finance the centre. "The total CONSTRUCTION [] cost of the construction work is RM240 million,” Digistar said.

ASDION BHD [], an information communication technology firm, has proposed to diversify into property investment and development. Asdion said it will undertake the new business venture via a proposed joint venture (JV) with builder PROTASCO BHD [].

Asdion said : "Barring any unforeseen circumstances, the proposed JV is reasonably expected to contribute 25% or more of the net profits of the group and may result in a diversion of more than 25% of the net assets of the group to an operation which differs widely from its current operations."

Oil palm PLANTATION [] firm KUALA LUMPUR KEPONG BHD [] and Indonesian rival PT Astra Agro Lestari Tbk have formed a JV to market refined palm oil products and provide logistic services for the products.

KLK said : "The rationale for the JV is amongst others, to establish new synergy by way of joint efforts with an Indonesian partner to further penetrate the international market.

"The JV will also facilitate the pooling of resources for processing and marketing in order to enjoy better economies of scale."

MY E.G. SERVICES BHD [] has signed a memorandum of understanding (MOU) with Axiata Group Bhd's wholly-owned subsidiary Celcom Axiata Bhd to jointly explore business opportunities electronic-government services

The MOU which is valid for one year forms the basis of MY E.G. Services and Celcom's collaboration until both firms enter into definitive agreements.