Business & Markets 2014
Written by Shalini Kumar of theedgemalaysia.com
Friday, 01 August 2014 22:44
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KUALA LUMPUR (Aug 1): Based on newsflow and corporate announcements on Friday, the stocks in focus on Monday (Aug 04) could be: water-related stocks, pipe makers, Pantech, REDtone, Econpile, CSL, glove makers and Eversendai.
Water-related stocks and pipe makers, such as Puncak Niaga Holdings Bhd, Gamuda Bhd, Jaks Resources Bhd and YLI Holdings Bhd could hog the limelight, following news that the Selangor state government had signed a heads of agreement with the federal government which would conclude the water restructuring exercise.
The agreement, signed between the state and the Energy, Green Technology and Water Ministry, also signals the the construction of the Langat 2 water treatment project.
The agreement was also based in accordance with the RM9.65 billion, offered to the water concessionaires.
The Employee's Provident Fund (EPF ) has raised its stake in Pantech Group Holdings Bhd to 5.34% after purchasing 1.788 million shares on the open market recently.
Along with its purchase of sales earlier in July, the EPF now controls 30.531 million shares, or 5.34% in Pantech, making it a substantial shareholder.
REDtone International Bhd will be divesting of its indirect unit in China, Shanghai Hong Sheng Business Administration Co Ltd for 28 million yuan (RM14 million) to Guotai Investment Holdings Ltd.
The company explained that the purpose for the divestment was to generate cash for its expansion business in China.
"The divestment is part of REDtone China's plan to generate cash for business expansion and to simplify its core business, ie. the telco related business," said the group in a statement to Bursa Malaysia.
Econpile Holdings Bhd announced that it has received a contract from I-Marcom Sdn Bhd worth RM23 million to provide piling and basement substructure works for a mixed property development project.
The duration for the contract is for 13 months and is expected to start on Aug 15 this year.
China Stationery Ltd has said the cause of the fire at one of its production plants in China was due to an electrical short circuit.
The police investigation report has revealed that the production area lost is about 12,000 square metres of the total floor area of 16,500 square metres, and the extent of the loss arising from the fire is estimated at 332.73 million yuan.
Glove counters like Supermax Corp Bhd, Hartalega Holdings Bhd and Top Glove Corp Bhd could also see their stock making gains, as the "worst known outbreak" of Ebola continues to plague West African nations, and concerns of the deadly virus spreading to other nations rises.
The current outbreak of Ebola has registered more than 670 deaths so far.
Eversendai Corp Bhd saw a 71.37% stake belonging to executive chairman and group managing director Tan Sri A K Nathan and his son Narishnath Nathan crossed off-market to his private vehicle, Vahana Holdings Sdn Bhd.
The transaction was done for 99.5 sen per share or a total of RM549.59 million.
Nathan said the restructuring was done to pave the way to finance Eversendai's wholly-owned unit Eversendai Offshore RMC FZE's venture into the oil & gas industry by building two units of liftboats.