Written by Joseph Chin
Saturday, 09 January 2010 09:43
KUALA LUMPUR: Stocks on Bursa Malaysia should start the new week on Monday, Jan 11 on a firm note after US stocks rose on Friday after trading in the red most of the day as investors concluded weak December jobs data wouldn't interrupt a trend of steady economic recovery.
The S&P 500 and the Dow hit new 15-month highs while the Nasdaq climbed to its highest level in 16 months.
The Dow Jones industrial average rose 11.33 points, or 0.11 percent, at 10,618.19. The Standard & Poor's 500 Index climbed 3.29 points, or 0.29 percent, at 1,144.98. The Nasdaq Composite Index added 17.12 points, or 0.74 percent, at 2,317.17.
On Friday, the FBM KLCI closed 1.56 points higher at 1292.98 points, lifted by gains in CIMB and Maybank. The local market was tradng in and out of positive territory as investors were concerned of the US employment report.
The FBM KLCI futures closed four points higher at 1,297. However, if sustained buying does resume, the 30-stock bencmark index could again test the psychological important 1,300 level. The 1,300 has proved to be a formidable resistance level over the past week.
Stocks to watch are toll concessionaires, CAHYA MATA SARAWAK BHD [] (CMSB), Priceworth Wood Products and Latexx Partners. Other stocks are companies involved in boardroom or shareholders tussles including PETRA PERDANA BHD [] and Ho Hup CONSTRUCTION [] Co.
Prime Minister Datuk Seri Najib Tun Razak said the government was at the final stage of restructuring the highway toll rates which will reflect consumer interests and satisfaction as well as a high level of highway quality.
"We are now in the final stage, and I will make an announcement (on the new toll rates)," he was quoted saying by Bernama. The new toll rates would be "reasonable", he said when opening Persada Plus, the main headquarters of PLUS Expressway Bhd.
Major companies operating tolled roads are PLUS, Litrak, Gamuda and IJM Corp.
CMSB its 51% owned subsidiary PPES Works (Sarawak) Sdn Bhd have approved the sale of their stakes in UBG BHD [] for RM465.52 million to PetroSaudi International Ltd or RM2.50 per share.
CMSB said at RM2.50 per share, it was a premium of 11 sen or 4.60% over the last closing market price of UBG shares on Jan 7 of RM2.39 per UBG share.
In Priceworth, it is acquiring Maju Sinar Network Sdn Bhd, which has a timber concession in Sabah for
RM25 million which would be satisfied entirely by new 38.46 million Priceworth shares at an issue price of 65 sen each.
Priceworth said the market value of the timber rights and interests held by Maju Sinar were RM34.12 million. Due to the deferred tax of 25%, the value of the rights would be RM25.59 million.
Based on the valuation report, the estimated net harvestable timber volume from the concession area is 756,405 cubic metres or about 48.31 cubic metres per ha. As of Oct 30, 2009 an estimated 282,492 cubic metres have been harvested, leaving a balance of 473,913 cubic metres.
Priceworth said the proposed acquisition would provide the group with immediate additional source of supply of logs for its plywood mill and sawmill.
In Latexx, it is teaming up with Amsterdam-based Budev BV to market and distribute protein-free gloves. The JV company would treat natural rubber latex examination and surgical gloves using Budev's TECHNOLOGY [].
The proposed JV would enable Latexx to venture into a new era of technology to treat natural rubber latex examination and surgical gloves with extremely reduced levels of proteins and allergens to non-detectable level to prevent users from having an allergic reaction.