Stocks To Watch UEM Sunrise, KLK, PPB, Minetech, Hai-O


Business & Markets 2014
Written by Chong Jin Hun of theedgemalaysia.com   
Friday, 07 February 2014 18:45

KUALA LUMPUR (Feb 7): Based on Bursa Malaysia announcements and news flow today, stocks to watch this Monday (Feb 10) may include the following companies :

UEM Sunrise Bhd and Kuala Lumpur Kepong Bhd (KLK) is forming a joint venture (JV) to develop some 1,200 ha (3,000 acres) of freehold land in Johor.

According to UEM Sunrise's statement to the exchange today, the firm and KLK planed to develop 2,500 acres in Kulai Jaya and another 500 acres in Johor Bahru.

At a press conference, KLK CEO Tan Sri Lee Oi Hian said the property projects in Johor would fetched an estimated gross development value of RM20 billion. This took into account the combined value of RM1.74 billion for the tracts to be jointly developed by both firms.

Oil palm plantation firms like KLK and PPB Group Bhd may also come into focus on Monday as the Malaysian Palm Oil Board will be releasing the sector's January 2014 data that day.

Reuters reported that Malaysian palm oil stocks in January were expected to fall for the first time since June thanks to seasonally lower output, but sluggish demand for the tropical oil meant inventories were likely to be only slightly lower.

A Reuters survey of five planters and traders showed output in the world's second-largest producer would likely fall to 1.52 million tonnes in January, down 8.8 per cent from a month earlier as oil palm trees enter a resting period resulting in smaller yields.

Shares of Minetech Resources Bhd, a building material entity, will resume trading this Monday. This follows a trading suspension since since 4.17pm today.

The suspension followed Bursa Malaysia's unusual market activity query on the sharp rise in the trading volume of Minetech shares recently.

In response, Minetech said the firm was in "the midst of finalising negotiation for a quarry concession in a southern state in Malaysia".

"The company is continuously exploring more potential collaborations with foreign parties in relation to our core quarry, premix and construction businesses as well as bituminous related products and services," Mintech said.

Minetech also said it was in talks over a potential project in Cambodia.

Hai-O Enterprise Bhd shares will trade ex-dividend this Monday. The Chinese medicine manufacturer and retailer plans to pay an interim  single-tier dividend of four sen a share.

The payment date falls on February 27.