Stocks To Watch MAS, oil and gas stocks, TM, OKA, Cypark, PPB, MMC, Boustead

What price MAS will drop to????

0.15 or 0.05, tomorrow you will know.

Business & Markets 2014
Written by Ho Wah Foon of   
Sunday, 09 March 2014 17:40

KUALA LUMPUR (Mar 9): Malaysia Airline System Bhd (MAS) is likely to come under heavy selling pressure after its Beijing-bound Boeing 777-200ER plane MH370 went missing yesterday.

At Friday’s market close, hours before the 'missing plane' incident, MAS' share had ended flat at 25 sen.  

As of late afternoon today, the missing plane has still not been detected. MAS may have to take a relook at its 15 Boeing 777-200ER jets in its fleet of about 100 planes. A new model has a list price of US$261.5 million.

The missing plane, whether found or not eventually, will deal another financial blow to the national carrier as it braced for possibly a spate of international legal suits arising from the mishap of the ill-fated plane.

Last month, MAS reported its fourth straight quarter of losses, with a net loss of RM343.4 million on revenue of RM3.97 billion. For the full year, the airline's net loss ballooned to RM1.17 billion compared with a net loss of RM432.59 million in 2012.

“MAS share price will be adversely impacted by the tragedy in spite of the fact that MAS has an excellent flight safety record. Investors will be emotional and emotions move share prices,” said Ian Yoong, a fund manager-turn-investor.

“MAS’ poor track record of losses does not bode well for its share price in the short term. We expect a rough ride for MAS share price on Monday,” he added.

Oil and gas sector is set to emerge the "rising star" which would significantly drive the Malaysian economy forward this year, Prime Minister Datuk Seri Najib Tun Razak said Friday.

He said the expectation was based on the number of oil and gas projects to be awarded when the massive RM61 billion Refinery and Petrochemicals Integrated Development (RAPID) in Pengerang, Johor, got off the ground by year-end, Bernama reported.

"This will have a major impact on the economy. I'm also hoping for some recovery in other commodity prices as well this year.

“I think the commodity (crude palm oil) price… is also expected to spiral. CPO prices will hover between RM2,500 and RM3,000 per tonne in the near-term," he said.

Najib was replying to a question from Bank Muamalat chairman Tan Sri Dr Munir Majid, who asked which sector would be the main driver of economic growth this year during a dialogue at the National Economic Summit with the Prime Minister on Friday.

Telekom Malaysia Bhd (TM) is collaborating with 15 global telecommunication companies to establish a new submarine-cable system.

The proposed project is known as the South East Asia – Middle East – Western Europe 5 (SEA-ME-WE 5).

The collaboration was made official with the signing of the construction and maintenance agreement by consortium members, which include Bangladesh Submarine Cable Co Ltd, China Telecommunications Global Ltd, and Singapore Telecommunications Ltd.

TM chairman Datuk Seri Halim Shafie said the higher bandwidth capacity of the cable system via the 24Tbps (Terabits per second) and 100Gbps (Gigabits per second) wave-length technology would provide better user experience of enhanced Internet speed and quality.

“The resilient connectivity of SEA-ME-WE 5 will not only benefit TM, but the nation as a whole,” Halim said. He, however, declined to comment on the portion of investment that TM planned for the system.

With an approximate distance of 20,000 km, the SEA-ME-WE 5 will provide connectivity to 17 countries across South East Asia, South Asia, the Middle East, and Europe.

OKA Corp Bhd has proposed to split its shares with a par value of RM1 each into two units of 50 sen each.

OKA, which manufacturers building materials, told the exchange today that the move was expected to make its shares more affordable to shareholders and investors.

The proposed share split will expand OKA's issued base to 121.8 million shares of 50 sen each. This compares with the existing 60.9 million shares of RM1 each.

After the share split, the group said the price of its shares would be adjusted accordingly to the theoretical-adjusted market price of the divided shares.

OKA shares fell one sen or 0.7% to close at RM1.38.

Cypark Resources Bhd had proposed a final tax-free dividend of five sen a share for financial year ended October 31, 2013, the environmental engineering firm told the exchange today.

"The date of entitlement and date of payment in respect of the aforesaid dividend will be determined and announced in due course," Cypark said in a statement.

The final dividend will bring Cypark's full-year payout to five sen a share.

At Cypark share's closing price of RM2.35 today, the full-year payout translates into a 2% yield, according to calculations by

PPB Group Bhd saw its shares being bought up by the Employees Provident Fund (EPF) on March 3 and March 4. The fund bought 83,000 and 63,000 PPB shares respectively for the two days .

The started buying on Feb 28, with 161,900 shares. But before this, the fund sold 196,000 shares in PPB.

PPB announced a higher final dividend of 17 sen per share while releasing its latest results on Feb 28, which showed its 2013 full year net profit rise to RM994 million from RM842 million.

PPB, which rose sharply recently, fell 26 sen to end at RM16.40 per share.

MMC Corporation Bhd told Bursa Malaysia that the Central Provident Fund (EPF) disposed 258,200 shares of the company on March 4, bringing its direct and indirect stake in MMC down to 5.95%.

This followed sales of 160,000 shares on Feb 27, 400,000 on Feb 28 and 717,900 on March 3.

On Feb 27, MMC reported that its net profit for the fourth quarter of 2013 fell nearly 50% on-year to RM40.96 million.

MMC was flat at RM2.80 at market close today.

Boustead Holdings Bhd, via subsidiary Boustad Naval Shipyard Sdn Bhd, has signed a memorandum of understanding (MOU) with the Royal Malaysia Navy (RMN).

Boustead said the MOU underscored the company's commitment to share its ship-building knowledge and expertise with the government.

Boustead said the objective of the MOU was to improve human resource efficiency and productivity in the ship-building industry.

"The parties are interested in the field of personnel secondment with the objective of improving human resource efficiencies and productivity in the ship-building industry.

"BNS (Boustead Naval Shipyard) and RMN may also cooperate in any activity beneficial to both parties, the details of which will be highlighted in specific documents related to such activities," Boustead said.

RMN is the naval arm of the Malaysian armed forces which in turn comes under the purview of the defence ministry.