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Written by Surin Murugiah of theedgemalaysia.com
Thursday, 02 June 2011 22:08
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KUALA LUMPUR: Regional markets are likely to trade cautiously on Friday, June 3 following some of the less-than encouraging economic data released in the US, as well as ahead of that country’s non-farm payrolls growth figures coming out later in the day.
Global economic uncertainties have weighed heavily on equity markets, including at Bursa Malaysia, the past week.
Most key Asian markets fell sharply on Thursday as jittery investors sold down their shares against the backdrop of various issues including a motion of no confidence against the Japanese Prime Minister; Moody’s Investors Services saying Greece had a 50% chance of defaulting on its loans and new US claims for unemployment benefits falling less than expected last week.
On Bursa Malaysia, stocks that could be in focus include RHB Capital and other banking stocks given the likely M&A play in the sector; GENTING BHD [], MTD Capital, Petra Energy and Media Prima.
RHB Capital shares have been advancing over the past two days after CIMB Group Bhd and MALAYAN BANKING BHD [] said on May 31 that they had obtained Bank Negara’s nod to start possible merger talks with RHB Capital.
However, CIMB and Maybank shares could extend their losses on Friday as the potential price to be paid for the possible merger remains uncertain.
Genting Bhd could also be in focus given its overseas expansion plans in Miami, with expectations that the group would try to secure a gaming licence there.
MTD CONSTRUCTION [] Sdn Bhd (MTDC) won a RM38.58 million suit it filed in March 2003 against AXA Affin Assurance Bhd involving a claim on a contractors’ All Risks Policy against the latter.
MT ACPI Engineering Bhd said on June 2 the case was ruled in favour of MTDC on May 27, with the judge holding AXA Affin liable for the damages to be assessed by the Court Registrar.
Petra Energy entered into a memorandum of understanding with Labuan Shipyard & Engineering Sdn Bhd (LSE) to utilise the latter’s shipyard facilities at Victoria Harbour situated at Labuan Island for purpose of fabrications activities.
Its wholly owned subsidiary Petra Resources Sdn Bhd had signed the MoU with LSE to explore areas of collaboration with regards to of fabrication yards, fabrication works and storage facilities; and to promote any other commercial endeavor for mutual benefit especially in oil and gas sector.
Meanwhile, Media Prima clarified that it had not entered into any discussion nor did it have any plans to acquire or operate Bernama TV.