Written by Fong Min Hun
Tuesday, 13 October 2009 08:03
KUALA LUMPUR: Interest in the market should pick up on Tuesday, Oct 13, as investors' sentiment should perk up from some small corporate news and firmer overnight close on Wall Street.
Oil and gas-related counters and companies in the services sector should attract interest as oil price continues to climb.
On the political front, the 60th UMNO general assembly starts on Tuesday, where about 2,500 delegates will meet for four days to decide on amendments to the party constitution, seen as crucial for the party to stay relevant and push forward.
As for MCA, there is a clamour for fresh elections to overcome the crisis in the party.
On Wall Street, the Dow Jones industrial average added 20.86 points, or 0.21 percent, to 9,885.80. The Standard & Poor's 500 Index gained 4.70 points, or 0.44 percent, to 1,076.19. The Nasdaq Composite Index was off 0.14 point, or 0.01 percent, to 2,139.14. Many market players were away for the Columbus Day holiday.
As for oil, it jumped 2% on optimism about the pace of global economic recovery and as cold weather across the United States boosted fuel demand. The National Weather Service said total U.S. heating demand will be higher than normal this week as the first seasonal wave of cold weather hits the Northeast and Midwest.
U.S. crude rose US$1.50 to settle at US$73.27 a barrel, the highest settlement since August 24. Brent crude traded up US$1.36 to settle at US$71.36 a barrel. The rise in oil should stir up interest in the oil and gas counters.
At Bursa Malaysia, one of Malaysia's most colourful yet low-profile corporate personalities, Rin Kei Mei, has come back, albeit indirectly, to Perusahaan Sadur Timah Malaysia Bhd (Perstima), a company he co-founded in the late 1970s.
FORMIS RESOURCES BHD [], which will take control of ISS CONSULTING SOLUTIONS BHD [] if a proposal to inject its subsidiary goes through, is already looking at securing new contracts leveraging on the latter's expertise as a provider of SAP solutions.
Formis and ISS Consulting will resume trading on Tuesday.
Zecon has secured a RM182 million contract from Universiti Malaysia Sarawak (Unimas) to build a medical unit in its Kota Samarahan campus.
SILK Holdings will cease from being an affected lister under Practice Note 17 (PN17) when it puts into effect the provisions of its regularisation plan.
This will be done through the listing of new ordinary shares and the issuance of RCULS to the vendors of AQL in exchange for equity interest.
Bursa Malaysia had on Oct 12 informed them that the upliftment will be effective on Wednesday, Oct 14.
Mutiara Goodyear will see a massive shareholding change should a proposal by its largest shareholder, Weida Holdings Bhd, to sell more than half of its equity stake in the company go through.
Weida said yesterday that it had a share-sale agreement with Atis Corporation to dispose of some 20 million shares at 97 sen apiece. Weida further noted that it will seek a shareholder mandate to dispose of the rest of its shareholding at a price no lower than 97 sen.
Mutiara finished trading yesterday at 64 sen apiece, but news that Weida will be seeking a 97 sen price tag should cause some excitement in the counter this morning.
RedTone International announced a rights issues for as much as RM41.52 million together with free detachable warrants. The fund raising could be unattractive to investors who may see their shareholding in the company be diluted if they decide to not take up their share of rights.
