Written by Joseph Chin & Joy Lee
Wednesday, 20 January 2010 08:19
KUALA LUMPUR: Key Asian markets should get off on a firm footing on Wednesday, Jan 20 as investors heaved a sigh of relief over the strong overnight close on Wall Street following the better results from International Business Machines Corp.
On Wall Street, stocks rose broadly, lifting the Dow and the S&P 500 to fresh 15-month closing highs as investors bet a potential Republican victory in Massachusetts' Senate race could stall Obama's reform agenda, according to Reuters.
Wall Street also got a boost from TECHNOLOGY [] shares, which rallied in anticipation of strong earnings from bellwether International Business Machines Corp, which rose 1.8 percent to $134.14, making it the Dow's top boost.
The Dow Jones industrial average jumped 115.78 points, or 1.09 percent, to end at 10,725.43. The Standard & Poor's 500 Index shot up 14.20 points, or 1.25 percent, to 1,150.23. The Nasdaq Composite Index climbed 32.41 points, or 1.42 percent, to 2,320.40.
Stocks to watch include Tenaga Nasional and Public Bank, both of which will deliver their earnings with analysts upbeat on their outlook. Also to watch out for are the vehicle sales data to be released by the Malaysian Automotive Association.
Also on the watch list are Ann Joo Resources, Genting and Dayang.
Ann Joo Corp Sdn Bhd, the single largest shareholder, disposed of nearly 20 million Ann Joo Resources shares recently. This came amidst positive analysts reports about the outlook for the steel sector.
GENTING BHD [] plans to build a theme park and hotel within the Iskandar region in Johor to complement the group's Resorts World Sentosa attraction in Singapore, said its chairman Tan Sri Lim Kok Thay.
Genting is also looking at investments in the US as the global financial crisis in the US had offered several opportunities for the company.
Genting's US$4.4 billion integrated casino-resort will open its doors in Singapore today also.
Offshore services provider DAYANG ENTERPRISE HOLDINGS BHD [] has secured a RM70 million contract to charter its workboat Dayang Zamrud for a well reservoir management project undertaken by Brunei Shell Petroleum Company Sdn Bhd
Meanwhile, EON CAPITAL BHD [] is exploring several options including sale of assets and liabilities, acquisition of 5% stake or even merger with a local financial institution.
Ho Hup CONSTRUCTION [] Co. Bhd said the first and second reports undertaken by the investigative accountants Messrs Anuarul Azizan Chew & Co. revealed there existed reasonable suspicion that various offences of criminal breaches of trust.
Japan's Nikon Corp Ltd has emerged as a substantial shareholder in NOTION VTEC BHD [] after taking up 10% or 13.84 million shares in the precision component maker in a private placement exercise.
The shares were placed out for a total of RM33.78 million or RM2.44 a share, the price set on Jan 6, 2010, at a 10% discount to the weighted average market price of RM2.7066 for the five preceding market days.
LKT INDUSTRIAL BHD [] received a notice from Singapore Precision Engineering Pte Ltd (SPE) to take over the remaining shares in the company it does not already own at RM2.10 cash per share.
The voluntary offer for some 10.09 million shares, or 14.24% of LKT, that were not already owned by SPE and parties acting in concert would be posted to the respective shareholders within seven days, LKT said in a filing with Bursa Malaysia.
Lembaga Tabung Haji (LTH) recently raised its stake in Xingquan International Sports Holdings Ltd after acquiring two million shares in the Chinese sportswear maker, raising its stake to 5.2%. The stock rose two sen to RM1.19 yesterday.