Business & Markets 2014
Written by Charlotte Chong of theedgemalaysia.com
Monday, 29 September 2014 21:05
KUALA LUMPUR (Sept 29): Based on news flow and corporate announcements today, the stocks that may be in focus tomorrow (Sept 30) could include the following: Tecnic Group Bhd, SKP Resources Bhd, Genetec Technology Bhd, Genting Bhd, Berjaya Sports Toto Bhd, AmanahRaya Real Estate Investment Trust, SBC Corporation Bhd and Key Asic Bhd.
The stocks of both Tecnic Group Bhd and SKP Resources Bhd have been suspended near to market close today, sparking speculations on a possible merger between the two parties, said market sources.
The two plastic players are controlled by Datuk Gam Kim Huat with a 68.67% shareholding in Tecnic and 66.96% stake in SKP Resources, according to the companies’ latest shareholding filings.
Technic rose 31 sen to RM5.08 today, giving it a market capitalisation of RM200 million, while SKP Resources climbed 10.5 sen to close at 71 sen, translating to a market capitalisation of RM625.5 million.
Meanwhile, automated industrial equipment, systems and production tools manufacturer Genetec Technology Bhd has announced the securing of new job orders worth RM41.9 million.
Genetec said the new orders, which are secured from existing clients in various industries, were expected to contribute positively to the company’s earnings for the financial year ending March 31, 2015.
Genetec closed 3.45% lower at 14 sen, with a market capitalisation of RM49.2 million.
Gaming stocks such as Genting Bhd and Berjaya Sports Toto Bhd may climb, as analysts believed the government may reduce gaming taxes in the upcoming budget.
In a note today, TA Securities wrote that gaming taxes are expected to come down in order for local players to maintain their competitiveness against regional rivals.
TA’s analyst Tan Kam Meng has upgraded the gaming sector to “overweight”, from “neutral”. He raised Genting Bhd shares to “buy” from “hold”, with a target price of RM10.69.
“For BJ Toto, we reiterate our “buy” recommendation and target price of RM4.51, in anticipation of high dividend for FY15-17, yielding 7.2% to 7.45,” Tan said.
Genting rose 0.43% to close at RM9.34 today, translating to a market capitalisation of RM34.73 billion; while BJToto climbed 0.8% to RM3.80, with market capitalisation of RM5.12 billion.
AmanahRaya Real Estate Investment Trust (ARREIT) has entered into an agreement to lease to HELP University Sdn Bhd, two pieces of land which houses Wisma Amanah Raya Bhd together with car park facilities in Bukit Damansara for a long duration of 25 years, commencing Sept 03, 2014.
According to ARREIT, total rental rates will start from RM450,749.10 per month during the first five years (year 1 to 5), to be increased to RM527,312.7 per month in the last five year term (year 21 to 25).
“The future earnings of ARREIT are expected to improve by 7.95%, as a result of the lease agreement,” the REIT said.
ARREIT shares closed unchanged today at 89 sen, with a market capitalisation of RM510.17 million.
Meanwhile, SBC Corporation Bhd has entered into a Heads of Agreement (HoA) with HPL Hotels & Resorts Pte Ltd, for the latter to purchase a hotel that SBC will be constructing at Cuscaden Road, Singapore.
In its filing with Bursa Malaysia, SBC said the indicative purchase consideration for the hotel is between RM180 million up to RM200 million, subject to further agreement of the parties.
SBC closed 1.42% higher at RM2.15 today, which translates to a market capitalisation of RM336.6 million.
Additionally, Key Asic Bhd has proposed a share premium reduction of RM40 million, as well as a par value reduction of at least RM40.25 million today, to offset against its accumulated losses.
In a filing with Bursa Malaysia today, Key Asic said it plans to reduce its par value from 10 sen each to 5 sen apiece.
At market close today, the counter went up 5% to close at 10.5 sen, with a market capitalisation of RM84.3 million.