Written by The Edge Financial Daily
Wednesday, 28 April 2010 08:13
KUALA LUMPUR: Key regional markets including Bursa Malaysia are expected to face selling pressure on Wednesday, April 28 after US stocks posted their worst day in nearly three months.
On Wall Street, stocks tumbled on Tuesday, April 27 as downgrades of Greece and Portugal fuelled fears about euro-zone economic stability, and a grilling of Goldman Sachs on Capitol Hill heightened the possibility of financial reform, according to Reuters.
The Dow Jones industrial average dropped 213.04 points, or 1.90 percent, to 10,991.99. The Standard & Poor's 500 Index slid 28.34 points, or 2.34 percent, to 1,183.71. The Nasdaq Composite Index lost 51.48 points, or 2.04 percent, to 2,471.47.
At Bursa Malaysia, the fallout from Wall Street and the impact on key regional markets will also have a dampening impact on Bursa Malaysia.
Stocks to watch are GENERAL CORPORATION BHD [] (GCorp), TRC Synergy Bhd, ALLIANZ MALAYSIA BHD [], DELEUM BHD [] and SUNRISE BHD []. Others are SUNWAY CITY BHD [] (Suncity) and Ho Hup CONSTRUCTION [] Company Bhd.
Cash-rich GCorp major shareholders, Tan Sri Low Keng Huat and his son Datuk Marco Low Peng Kiat, have offered to acquire the group's entire business and undertaking including its assets and liabilities for RM505 million, representing RM1.70 per share. This was 11 sen above the closing price of RM1.59 on Tuesday.
TRC Synergy Bhd's subsidiary, Trans Resources Corp Sdn Bhd, has bagged a RM20.39 million contract for the construction of government apartments in Putrajaya.
It received a letter of award from Putrajaya Holdings Sdn Bhd for the proposed construction and completion of remaining and rectification works for 622 units of government apartments at Parcel 5R6 in Precinct 5, Putrajaya.
Deleum is upbeat on the outlook for its operations following the expansion of its support services targeted at the players in the oil and gas (O&G) industry.
Group managing director Chandran Aloysius Rajaduri said the recent acquisition of Rotary Technical Services Sdn Bhd, via its subsidiary Delcom Services Sdn Bhd, has enabled the group to expand its current array of services it can provide to the O&G players.
Shares of Allianz fell after it proposed a rights issue to raise about RM611 million, the bulk of which would be used to repay a loan.
Sunrise Bhd may consider injecting some of its property assets into a real estate investment trust as they begin to deliver stable income, its executive chairman Tong Kooi Ong said.
"We have invested considerably in a pool of investment assets over the last few years, which are now starting to bear fruit," said Tong, adding it may consider a REIT "at a later stage," Tong was quoted saying by Reuters in an e-mail interview.
Suncity has proposed to acquire Sunway Parking Management Bhd from Sunway Pyramid Sdn Bhd for RM12.6 million. Suncity said the purchase of SPM was to allow it access to a vacant land parcel next to the Sunway Pyramid shopping mall which is currently owned by SPM, which is 52% owned by Suncity.
Suncity has planned to construct a 28-storey mixed use commercial building with office and retail elements with 1,027 car parks, in addition to pedestrian and vehicle access directly from the shopping mall.
Ho Hup has filed a suit over the joint development agreement between Bukit Jalil Development Sdn Bhd (BJDSB) and Pioneer Haven Sdn Bhd.
Ho Hup said the March 16 agreement related to the 60 acres of freehold land in Bukit Jalil, held by BJDSB as registered owner.