Written by Joseph Chin
Wednesday, 08 September 2010 08:26
KUALA LUMPUR: Key Asian markets including Bursa Malaysia may slip on Wednesday, Sept 8 as investors confidence take a hit from the overnight fall on Wall Street on renewed concerns about European banks and the global economy.
The Dow Jones industrial average closed down 107.24 points, or 1.03%, at 10,340.69, while the Standard & Poor's 500 Index lost 12.67 points, or 1.15%, to 1,091.84. The Nasdaq Composite Index fell 24.86 points, or 1.11%, to 2,208.89.
Reuters reports that souring investor sentiment was data showing German manufacturing orders unexpectedly fell in July at their steepest rate in more than a year.
Investors were also rattled by a Wall Street Journal report that said "stress tests" published more than a month ago underestimated some lenders' holdings of potentially risky government debt.
That helped rekindle concerns about the vulnerability of the sector after Germany's banking association said Monday the country's 10 biggest banks may need 105 billion euros of additional capital.
Stocks to watch on Bursa Malaysia include BINA PURI HOLDINGS BHD [], UMW HOLDINGS BHD [], Masterskill Education Group and CAROTECH BHD [].
Bina Puri is teaming up with Medini Land Sdn Bhd to develop 1.048 million sq ft gross floor area in Medini North, the first phase of Medini Iskandar Malaysia.
The gross development value is about RM500 million upon completion of the two-phase development in Johor.
Bina Puri will have an 80% stake in the development of the project which is expected to be completed in 2012.
Meanwhile, UMW said the US$183.12 million contract agreement with HESS (Indonesia-Pangkah) Ltd to provide drilling rig and drilling services to be signed by end-September instead of end-August.
On Aug 17, UMW announced that it had received a letter of award from HESS where UMW would provide its jack-up drilling rig “Naga 2” and drilling services for the Pangkah WHP-B development drilling in the Ujung Pangkah field, off East Java.
In Masterskill Education Group foreign funds FMR LLC, FIL Ltd bought 4.859m shares on Sept 1, upping their combined stake in the education provider to 9.2 percent or 37.72 million shares
In Carotech Bhd, Lembaga Tabung Haji had acquired 8.0 million shares on Sept 2 and 3, raising its stake to 63.238 million shares ot 6.93%.
Carotech is a Guidance Note 5 company and as at Sept 1, there has been no material development on the status of the proposed debt restructuring scheme. The financial lenders are still reviewing and considering the proposed scheme.
The Corporate Debt Restructuring Committee (CDRC) had in August called for two lenders meeting, and the company has reviewed and submitted a proposed debt restructuring scheme to all the financial lenders. The financial lenders are currently reviewing and considering the proposed scheme.
The CDRC gave Carotech six months from July 1, 2010 to complete the proposed scheme.
