Written by Melody Song & Joseph Chin
Wednesday, 27 January 2010 07:55
KUALA LUMPUR: Key regional markets including Bursa Malaysia will see more volatile trade with more downside pressure again on Wednesday, Jan 27 after US stocks slipped late on Tuesday.
Investors’ worries about political and regulatory developments offset solid earnings and improved consumer confidence data, according to Reuters.
The Dow Jones industrial average shed 2.57 points, or 0.03 percent, to 10,194.29. The Standard & Poor's 500 Index fell 4.61 points, or 0.42 percent, to 1,092.17. The Nasdaq Composite Index lost 7.07 points, or 0.32 percent, to 2,203.73.
Based on Bloomberg data, all key regional markets are in the negative zone as of Tuesday, year-to-date except for the FBM KLCI and Jakarta Composite Index.
The Nikkei 225 is down 2.1% this year, Hang Seng Index a whopping 8.06%, Shanghai Composite Index 7.86% Taiwan’s Taiex 7.2% and Singapore’s Straits Times Indexx has fallen 5.22%. FBM KLCI is marginally higher by 0.8% and Jakarta 1.74%.
Stocks to watch include HONG LEONG BANK BHD [], EON CAPITAL BHD [], MULPHA INTERNATIONAL BHD [], REDtone, Sime Darby and SUNRISE BHD []. Also in focus will be glove makers, whose shares have come under selling pressure after the recent run-up despite the optimistic outlook for the sector, REDTONE INTERNATIONAL BHD [] and MALAYSIAN PACIFIC INDUSTRIES [] Bhd (MPI).
Hong Leong Bank is maintaining its offer price of RM7.10 per share for EONCap despite the target company's board stating that the price is too low. The offer for the takeover ends tomorrow, with Hong Leong Bank saying it would walk away if EONCap rejects its offer price.
The Edge FinancialDaily reports that the board of EONCap would meet again today, to decide whether to accept the offer.
Meanwhile, news report say Mulpha is showing interest in the group and has written to Bank Negara to start talks to acquire a stake in EONCap.
The Minority Shareholder Watchdog Group (MSWG) has come out strongly to state that HL Bank’s offer of RM7.10 per share is not a fair price and has called on EONCap shareholders to reject the offer.
Sime Darby Property Bhd and Sunrise Bhd have teamed up to undertake a RM1 billion project.
They will jointly develop three lots of freehold commercial land measuring 20.95 acres in the 180-acre Bukit Jelutong with a gross development value (GDV) of around RM1 billion.
REDtone launched its Internet Protocol TV (IPTV) channel branded as DETV, with the initial content from Chinese state broadcaster CCTV and expects to rake in RM6 million in revenue annually, less operational costs with a 10,000 customer base.
REDtone believes the move is complementary to existing business of providing broadband and telco services. REDtone posted stronger 2Q09 results of RM1.58 million in net profit from RM1.19 million in the preceding quarter.
MPI posted an impressive set results for the second quarter ended Dec 31, 2009, with net profit of RM25.71 million compared with net loss of RM14.73 million a year ago as the sector's outlook improved.
Revenue rose 18% to RM346.57 million from RM293.51 million a year ago. Earnings per share were 13.19 sen compared with loss per share of 7.56 sen.