Written by Joseph Chin
Saturday, 17 October 2009 20:28
KUALA LUMPUR: The market will be in an exciting time ahead next week, starting Oct 19, following the latest batch of corporate news and earnings and with the Budget 2010 proposals to be released on Oct 23.
The market sentiment could continue to be firm as investors await news from the Budget proposals but they should also brace for some profit taking after last week's run-up on stocks.
On Wall Street, US stocks fell on Friday weighed down by disappointing results from General Electric Co. and Bank of America Corp, raising concerns that it would be a bumpy road ahead for economic recovery.
GE reported a 20% drop in revenue, while Bank of America posted a US$1 billion loss as both struggled with still meager business and consumer spending.
The Dow Jones industrial average fell 67.03 points, or 0.67 percent, to 9,995.91. The Standard & Poor's 500 Index lost 8.88 points, or 0.81 percent, to 1,087.68. The Nasdaq Composite Index gave up 16.49 points, or 0.76 percent, at 2,156.80.
Reuters reports that US stocks could slip next week if the spate of earnings from bellwethers including Apple Inc and Caterpillar Inc do not live up to heightened expectations.
At Bursa Malaysia, stocks in focus would be MEDIA PRIMA BHD [] (MPB) and its 43%-owned The New Straits Times Press (Malaysia) Bhd (NSTP), TRADEWINDS (M) BHD [] (TWM) and IGB Corp Bhd.
MPB made a conditional takeover offer for NSTP on a one-for-one share exchange for MPB shares at an issue price of RM2 and one free MPB warrant for every five offer MPB shares accepted.
At RM2, the MPB offer share is 23 sen above last Thursday's closing price of RM1.77. NSTP shares closed at RM2.46.
To sweeten the offer, MPB also intends to distribute up to 24.604 million new MPB bonus warrants to its existing shareholders at an entitlement date to be determined later.
MPB and NSTP to resume trading on Monday but some quarters have said the offer is not in favour of NSTP minority shareholders who valued the company higher. Also MPB had priced itself much higher than the last closing price.
As for TWM, the Securities Commission had rejected the former's application for an exemption from an obligation to undertake a mandatory general offer (MGO) for the remaining shares in PADIBERAS NASIONAL BHD [] (Bernas).
Pursuant to the acquisition of 148.28 million shares in Bernas, or 31.52% stake, from Wang Tak Co. for RM308.42 million, the SC required TWM had to extend the same to Budaya Generasi (M) Sdn Bhd, a party acting in concert with TWM.
The Edge weekly, in its latest issue, said the heart of the matter is whether the acquisition of Bernas will really add any significant value to TWM which has seen its borrowings increase at a faster rate than the asset size over the last few years.
From assets worth RM2.1 billion and borrowings of RM664.6 million in FY04, its assets have increased to RM3.5 billion and the borrowings to RM1.2 billion. The borrowings will increase by at least RM525.97 million if the acquisition of a 53.76% stake in Bernas is approved at an EGM by TWM shareholders on Oct 28.
Meanwhile, RHB CAPITAL BHD [], the country's fourth largest banking group which operates RHB Bank Bhd, hit its 52-week high of RM5.74 on Friday ahead of a suspension of its shares pending an announcement.
According to sources, the bank is acquiring a stake in a bank in Indonesia. RHB Bank chairman Tan Sri Azlan Zainol is scheduled to meet the press and provide details about the regional expansion plan on Monday.
IGB could continue to see trading interest on expectations of a corporate development in the company with market talk that it might distribute treasury shares or make a placement to a local fund.
Saturday, 17 October 2009 20:28
KUALA LUMPUR: The market will be in an exciting time ahead next week, starting Oct 19, following the latest batch of corporate news and earnings and with the Budget 2010 proposals to be released on Oct 23.
The market sentiment could continue to be firm as investors await news from the Budget proposals but they should also brace for some profit taking after last week's run-up on stocks.
On Wall Street, US stocks fell on Friday weighed down by disappointing results from General Electric Co. and Bank of America Corp, raising concerns that it would be a bumpy road ahead for economic recovery.
GE reported a 20% drop in revenue, while Bank of America posted a US$1 billion loss as both struggled with still meager business and consumer spending.
The Dow Jones industrial average fell 67.03 points, or 0.67 percent, to 9,995.91. The Standard & Poor's 500 Index lost 8.88 points, or 0.81 percent, to 1,087.68. The Nasdaq Composite Index gave up 16.49 points, or 0.76 percent, at 2,156.80.
Reuters reports that US stocks could slip next week if the spate of earnings from bellwethers including Apple Inc and Caterpillar Inc do not live up to heightened expectations.
At Bursa Malaysia, stocks in focus would be MEDIA PRIMA BHD [] (MPB) and its 43%-owned The New Straits Times Press (Malaysia) Bhd (NSTP), TRADEWINDS (M) BHD [] (TWM) and IGB Corp Bhd.
MPB made a conditional takeover offer for NSTP on a one-for-one share exchange for MPB shares at an issue price of RM2 and one free MPB warrant for every five offer MPB shares accepted.
At RM2, the MPB offer share is 23 sen above last Thursday's closing price of RM1.77. NSTP shares closed at RM2.46.
To sweeten the offer, MPB also intends to distribute up to 24.604 million new MPB bonus warrants to its existing shareholders at an entitlement date to be determined later.
MPB and NSTP to resume trading on Monday but some quarters have said the offer is not in favour of NSTP minority shareholders who valued the company higher. Also MPB had priced itself much higher than the last closing price.
As for TWM, the Securities Commission had rejected the former's application for an exemption from an obligation to undertake a mandatory general offer (MGO) for the remaining shares in PADIBERAS NASIONAL BHD [] (Bernas).
Pursuant to the acquisition of 148.28 million shares in Bernas, or 31.52% stake, from Wang Tak Co. for RM308.42 million, the SC required TWM had to extend the same to Budaya Generasi (M) Sdn Bhd, a party acting in concert with TWM.
The Edge weekly, in its latest issue, said the heart of the matter is whether the acquisition of Bernas will really add any significant value to TWM which has seen its borrowings increase at a faster rate than the asset size over the last few years.
From assets worth RM2.1 billion and borrowings of RM664.6 million in FY04, its assets have increased to RM3.5 billion and the borrowings to RM1.2 billion. The borrowings will increase by at least RM525.97 million if the acquisition of a 53.76% stake in Bernas is approved at an EGM by TWM shareholders on Oct 28.
Meanwhile, RHB CAPITAL BHD [], the country's fourth largest banking group which operates RHB Bank Bhd, hit its 52-week high of RM5.74 on Friday ahead of a suspension of its shares pending an announcement.
According to sources, the bank is acquiring a stake in a bank in Indonesia. RHB Bank chairman Tan Sri Azlan Zainol is scheduled to meet the press and provide details about the regional expansion plan on Monday.
IGB could continue to see trading interest on expectations of a corporate development in the company with market talk that it might distribute treasury shares or make a placement to a local fund.