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The Budget 2012 proposals would be the focus of investors’ attention on Friday, Oct 7 on expectations of how the government will guide the economy out of the current turbulence from Europe and the US.
Economists expected the government to lower GDP growth for 2012 due to the external headwinds which would impact Malaysia’s exports.
However, the on-going Economic Transformation Programme and CONSTRUCTION [] projects were expected to underpin the economy. Steady jobs creation had held unemployment low while consumer spending remained firm, despite some signs of slowdown in the property sector.
Reports that the European Union's executive proposed coordinated recapitalisation of banks on Thursday as the bloc's regulators met to review capital buffers of stressed lenders provided support.
Among the stocks to watch are DIALOG GROUP BHD [], MISC BHD [], CIMB Group Holdings Bhd, KNM Holdings Bhd, Pos Malaysia.
Dialog’s subsidiary is teaming up with China Aviation Oil (Singapore) Corp Ltd (CAO) to design and build an oil storage tank terminal near Tanjung Langsat Port in Johor costing RM371 million.
Dialog said its 55% owned Centralised Terminals Sdn Bhd (CTSB) had signed a shareholders’ agreement to set up the JV company Langsat Terminal (Three) Sdn Bhd (LgT-3). MISC Bhd owns the remaining 45% of CTSB.
CIMB Group Holdings Bhd said it is in discussions with San Miguel Corp. with regards to a possible acquisition of a stake in Bank of Commerce in the Philippines. It said “these discussions are currently at an early stage and further announcements will be made in the event of any material developments”.
Bursa Malaysia Securities publicly reprimanded KNM GROUP BHD [] for breaching the Main Market Listing Requirements. The regulator also rapped and fined its directors a total of RM200,000 for not disclosing enough details about a proposed takeover in February 2010.
Earlier, KNM signed a contract worth US$71.63 million (RM227.61 million) with Lukoil Uzbekistan Operating Company. Its unit KNM Process Systems Sdn Bhd (KNMPS) had on Oct 3, 2011 signed the contract in respect of the development of documentation and equipment supply facility “booster compressor station” at the Khauzak site in Uzbekistan.
Meanwhile, Pos Malaysia is not inclined to support the Myemail project as it would reduce its (Pos Malaysia) activities and services. Information, Communication and Culture minister Datuk Seri Utama Dr Rais Yatim said the Mmyemail is not a Pos Malaysia project but is a project by a another company with its own financing.
“Pos Malaysia is not inclined to support projects of such as it would reduce Pos Malays’a activities and services,” he was quoted saying.
On Wednesday, TRICUBES BHD [], owner of Myemail, said the company was in talks with Polis Diraja Malaysia (PDRM), Dewan Bandaraya Kuala Lumpur (DBKL), Jabatan Pengangkutan Jalan (JPJ) and the Employees’ Provident Fund (EPF) about the project, and would begin pilot trials with two agencies this month.
