Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Wednesday, 18 September 2013 19:38
KUALA LUMPUR (Sept 18): Based on news flow and corporate announcements today, the stocks that may draw interest tomorrow include index-linked stocks, Kumpulan Perangsang, Tiong Nam, Puncak Niaga, property stocks and Berjaya group of companies.
Index-linked stocks are likely to react to the outcome of the two-day US Federal Reserve's Federal Open Market Committee (FOMC) meeting, to be made public after mid-night (Malaysian time).
The FOMC meeting will decide on the timing and quantum of US policy makers’ planned reduction of their quantitative easing measures.
The Federal Reserve's asset purchases had in the past supported the rise in global stock markets. Hence major withdrawal/sales will dampen markets.
KUMPULAN PERANGSANG SELANGOR [] Bhd (KPSB) will pay out a special dividend of 26.67 sen per share amounting to RM99 million from its divestment of its stake in KUMPULAN HARTANAH SELANGOR BHD [] (KHSB).
According to KPSB head of group strategic planning and investment Kevin Lee, the planned dividend payout is expected to be distributed by end-October this year.
"The distribution immediately follows when KPSB receives cash payment in early-October" Lee told reporters after KPSB's EGM today.
Lee said the stake divestment in KHSB will no longer make KPSB a property developer. However, KPSB will still hold on to its property assets.
TIONG NAM LOGISTICS HOLDINGS [] Bhd (TNLH) has proposed to undertake a share split and a right issue of warrants, which could spur interest in its shares.
The right issue of warrants could help the company to raise some RM42 million cash.
For the share split, this will involve the subdivision of every one (1) existing ordinary share of RM1.00 each into five (5) new ordinary shares of RM0.20 each.
For the rights issue of warrants, TNLH has proposed renounceable rights issue of 210,258,500 warrants at an issue price to be determined later, on the basis of one (1) warrant for every two (2) TNLH shares held after the proposed share split.
“Having considered that TNLH has been trading at an average price of RM3.79 for the past three (3) months, the proposed share split will increase the affordability and liquidity of TNLH shares which will in turn, will increase the appeal of TNLH shares to a wider group of investors,” said the company.
PUNCAK NIAGA HOLDINGS BHD [] has bagged an offshore oil and gas support-services contract from Petronas Carigali Sdn Bhd.
Puncak said it has received the letter of award (LOA) from Petronas Carigali to transport and install riser guards for the operations of Petronas Carigali.
"The contract (from Sept 12 to Oct 31, 2013) is expected to contribute positively to the earnings and net assets of
Puncak Group for the current financial year ending 31 December 2013.
Property stocks may come under pressure after the Real Estate and Housing Developers' Association Malaysia (Rehda) said it expects the government to increase the real property gains tax (RPGT) by 15-20 per cent in the 2014 Budget to be tabled on Oct 25.
But its chairman of finance and investment committee, Datuk Ng Seing Liong, said buyers should not worry about the increase in RGPT as it will affect buyers who dispose of PROPERTIES [] within five years after purchase.
Minister of Urban Well-being, Housing and Local Government, Datuk Abdul Rahman Dahlan Abdul Rahman, had said earlier the government was studying the possibility of increasing the RPGT to stabilise the prices of houses in the country.
Berjaya Food Bhd’s net profit soared 131% year-on-year (y-o-y) to RM5.2 million in the first quarter ended July 31, 2013, from RM2.3 million a year ago.
The company said the phenomenal increase in profit was due to the full effect of share of results from Berjaya Starbucks Coffee Company Sdn Bhd.
Berjaya Food also said the consolidation of results of Jollibean Foods Pte Ltd in the reviewed quarter was a contributing factor too.
Meanwhile, 1Q group revenue surged 47.6% y-o-y to RM36.5 million versus RM24.7 million.
“Looking ahead, we are positive on the opening of additional restaurants in the following quarters of the financial year, in accordance with its business plan locally and in Indonesia,” said Berjaya Food.
BERJAYA CORPORATION BHD [] announced that Bursa Malaysia Securities Berhad has approved:
(i) the admission of its unit BAuto to the official list of the Main Market of Bursa Securities, and the listing and quotation of the entire enlarged issued and paid-up ordinary share capital of BAuto of up to RM401,381,500 comprising up to 802,763,000 new ordinary shares of RM0.50 each; and
(ii) additional listing of up to 5% of the total issued and paid-up share capital of BAuto to be issued pursuant to the exercise of options under the proposed employees’ share option scheme.
BERJAYA SPORTS TOTO BHD [] announced trading suspension of its shares from tomorrow morning pending a material announcement.
If announcement is made later tomorrow and trading is resumed within the day, investors may react to the announcement.