Business & Markets 2013
Written by Shalini Kumar of theedgemalaysia.com
Tuesday, 05 March 2013 19:28
KUALA LUMPUR (Mar 5): Based on announcements to Bursa Malaysia and news flow today, companies that may attract investor interest on Wednesday (March 6) could include PLANTATION [] firms, Pintaras Jaya, Top Glove, Inari, UEM Land, Bumi Armada, Sime Darby, TM, IHH and SPK.
Plantation companies with oil palm plantations and refining operations in Sabah may continue to see their shares reacting to Sabah situation, if the on-going violent clashes between Malaysian security forces and the Sulu armed intruders get worsen and prolong.
Shares in some major plantation firms, such as KLK, PPB, Batu Kawan were among the top decliners across the stock market today (Tuesday).
CIMB Investment Bank’s analyst Ivy Ng Lee Fang said the current backdrop does not bode well for upstream and downstream plantation operations. She said the clashes may affect harvest, transportation and sales of palm oil from Sabah if the issue is not well managed.
Production of palm oil in the state accounts for about 25% of Malaysia’s total output.
PINTARAS JAYA BHD []’s wholly owned unit has received a letter of award from Mammoth Empire CONSTRUCTION [] Sdn Bhd to undertake bored piling works for a commercial development project at Subang Jaya.
The works are to commence immediately with a completion period of nine months.
The said contract, valued at RM47.5 million, is expected to contribute positively to PJB Group's future earnings, the company said.
TOP GLOVE CORPORATION BHD [] has proposed a subscription of 27% equity in Value Add Sdn Bhd (VA) and acquisition of T.S Law Reality Sdn Bhd’s commercial building for a total of RM226 million.
Top Glove added that the 27% equity interest in VA amounted to RM12.2 million.
The world’s largest rubber gloves maker added that the subscription exercise was to partially fund the purchase of said property.
The acquisition was meant to generate a higher return for its current investment and potential capital appreciation in the future, it added.
Inari Bhd announced that its unit, Inari TECHNOLOGY [] Sdn Bhd, has been granted full tax exemption, in relation to the production of miniature integrated front end module for wireless millimetre-wave devices for five years from 1 April 2012 to 30 March 2017.
Meanwhile, in a separate announcement, Inari said its controlling shareholder Datuk Thong Kok Khee had bought 50,000 shares of Inari from the open market at 41 sen per unit on Feb 28. Thong has been raising his stake in the company for the past month.
TELEKOM MALAYSIA BHD [], IHH Healthcare Bhd, UEM Land Bhd, Sapura KENCANA PETROLEUM BHD [], Bumi Armada Bhd and SIME DARBY BHD [] were companies highlighted at an investor’s conference in New York by CIMB on May4-5, and they could possibly attract interest from US-based foreign funds.
In a press release today, CIMB said the conference provided an opportunity for US-based institutional investors to gain a first-hand insight into leading Asia-Pacific companies.