Stocks To Watch Voir, AirAsia X, AirAsia, KNM, plantation companies

Business & Markets 2013
Written by Chong Jin Hun of   
Thursday, 19 December 2013 18:59

KUALA LUMPUR (Dec 19): Based on Bursa Malaysia announcements and news flow today, stocks to watch tomorrow (December 20) may include the following companies :

Voir Holdings Bhd is planning a bonus issue of 60 million warrants in the  clothing entity.

According to Voir, the exercise will be done on the basis of one warrant for every two existing shares held in the company.

AirAsia X Bhd and AirAsia Bhd will also be closely watched. Reuters reported that Malaysian budget carrier AirAsiaX placed a $6 billion order for 25 Airbus A330-300 aircraft on Wednesday in a bid to challenge network carriers by piggy-backing off the success of Asia's largest low-cost airline, AirAsia.

Malaysian entrepreneur Tony Fernandes, whose AirAsia group has already ordered more than 500 smaller Airbus planes, described the move as a bid to set up the low-cost equivalent of a major connecting carrier such as Dubai's Emirates.

"It's time to take the next step and build the equivalent of an Emirates in the low-cost arena," he said.

KNM Group Bhd has obtained syndicated loans amounting to EUR220 million (RM985 million) from several foreign lenders. KNM, a process equipment manufacturer, said the funds  will refinance its existing borrowings used to acquire Germany-based Borsig GmbH.

According to KNM, it has signed a facilities agreement with UniCredit Bank AG , UniCredit Luxembourg S.A., UniCredit Luxembourg S.A. and other participating financial institutions.

Shares of oil palm plantation firms may attract market interest as a weaker ringgit versus the US dollar prompts expectation that local palm oil will be more competitive in world markets.

Bloomberg reported that palm oil rallied the most in almost two weeks on speculation that exports from Malaysia, the world’s second-largest producer, may increase after the local currency slid to the lowest level in three months.

The contract for delivery in March advanced as much as 1.2 percent to 2,582 ringgit ($788) a metric ton on the Bursa Malaysia Derivatives, the biggest gain for the most-active futures since Dec. 6, and was at 2,576 ringgit at 12:02 p.m. in Kuala Lumpur. The commodity gained 5.5 percent this year, heading for the first annual increase in three years.

Malaysia’s ringgit fell the most in four weeks and government bonds slid after the Federal Reserve pared stimulus that has spurred flows into emerging markets.

The ringgit dropped 0.6 percent, the biggest decline since Nov. 21, to 3.2764 per dollar as of 12:49 p.m. in Kuala Lumpur, according to data compiled by Bloomberg. It reached 3.2810 earlier, the weakest since Sept. 16. The Japanese yen touched 104.37 per dollar, the weakest level in more than five years.