Written by Joseph Chin
Saturday, 26 December 2009 08:26
KUALA LUMPUR: The market is expected to stay rather quiet this coming week, beginning Dec 28 in another holiday-shortened week as investors wind up their positions for the year.
On Wall Street, U.S. stocks rallied in a brief pre-holiday session on Thursday, closing at 2009 highs, after data showing a drop in initial jobless claims and growth in durable goods orders suggested an economic recovery was picking up steam.
According to Reuters, data showed initial jobless claims fell more than forecast last week to the lowest tally since September 2008, while a separate report showed durable goods orders, excluding transportation, surged 2.0 percent, beating expectations.
The Dow Jones industrial average gained 53.66 points, or 0.51 percent, to end at 10,520.10. The Standard & Poor's 500 Index gained 5.89 points, or 0.53 percent, to finish at 1,126.48. The Nasdaq Composite Index rose 16.05 points, or 0.71 percent, to close at 2,285.69.
At Bursa Malaysia, stocks to watch include property counters such as E&O and SP Setia after the government relaxed the 5% real property gains tax (RPGT) while PETRA PERDANA BHD [], SAPURACREST PETROLEUM BHD [] and KEY ASIC BHD [] could be in focus.
Interest could pick up in property stocks following the latest development concerning the RPGT where the tax would only be applicable for PROPERTIES [] held for below five years. Under the Budget 2010 proposals, it was to have been across the board.
Meanwhile, Petra Perdana and PETRA ENERGY BHD [] could see some trading interest after Petra Perdana’s executive director Shamsul Saad sought a court order to stop Petra Perdana from selling its 29.59% stake in associate Petra Energy.
The interim ex-parte order is to be in force until an EGM of Petra Perdana is held, according to the Bursa Malaysia announcement.
SapuraCrest should see some upside after its unit TL Offshore Sdn Bhd was awarded a joint contract by 11 of Petronas’ Production Sharing Contractors for the provision of works and services for the transportation and installation of offshore oil and gas facilities and structures for the PSCs for 2010 to 2012.
The contract price for the scope of works for year 2010 is approximately RM1.5 billion. Commencement is expected to be in March 2010 around various offshore locations in Malaysian waters.
Meanwhile, the Securities Commission has rejected Key Asic’s proposal to issue up to 142 million shares or 15% of its paid-up in a move to list on the Taiwan Depository Receipt on the Taiwan Stock Exchange.
The company said the SC’s rejection was premised on the concern of the corporate governance record of Benny T. Hu, an independent non-executive director of Key ASIC.