In the US, stocks fell to their lowest level in 10 weeks on Tuesday as talk of a second government stimulus plan heightened fears that the economy is not yet on the path to recovery and that the corporate earnings season starting this week will be weak.
Crude palm oil (CPO) futures have extended their declines, in line with the fall in crude oil price, and weaker outlook. CPO for third-month delivery fell RM60 to RM2,069.
Stocks to watch include Berjaya Land Bhd, Berjaya Sports Toto, Mitrajaya Holdings Bhd and plantation stocks including IOI Corp, KL Kepong and soon-to-be suspended Satang Holdings Bhd and TMC Life Sciences.
BLand raised RM190 million after placing out 40 million shares in BToto. The shares, representing a 3.18% stake in BToto, were placed out at RM4.75 per share.
This was 30 sen or 5.94% below the weighted average market price of BToto shares for the past three days ended July 6 of RM5.05 per BToto share.
Mitrajaya, which has fallen from investors’ screen for years, secured a contract valued at RM63.64 million for the main building works of a university in Iskandar Malaysia, Johor.
Satang may come under selling pressure again as it faces suspension on July 13 for failing to submit its revamped plan to the authorities by the July 6 deadline. Satang’s share price fell as much as 19 sen or 48% to a low of 20 sen in intra-day trade. It closed nine sen lower to 30 sen.
In Goh Ban Huat, Tan Sri Robert Tan Hua Choon raised his stake in the company to 33.11% or 20.5 million shares after acquiring 1.65 million shares on June 30 and July 2. The board is seeking another offeror as it describes Tan's offer of RM1.25 per share as loo low since GBH's net tangible asset per share is RM2.54.
An independent advice circular is expected to be released on July 25, which will incorporate the valuation of the land.
The Edge Financial Daily had recently reported that according to the company’s annual report for fiscal year ended Dec 31, 2008, GBH owns 56,874 sq metres of land with a total net book value of RM119.98 million.
Of the 56,874 sq metres, the report shows that 52,910 sq metres are freehold land and the remaining land are storage yards. Two largest pieces of freehold land, partly occupied by factories, measure 42,224 sq metres valued at RM92.42 million and are in Segambut, Kuala Lumpur.
The net asset value (NAV) per share of the company is RM2.54 per share. This is much higher than the RM1.25 per share which Tan, who is the single largest shareholder with 30.45% stake or 18.85 million shares, is offering to the other shareholders of the loss-making company. The stake was acquire in January last year.
Meanwhile, TMC Life Sciences Bhd has seen the emergence of Utilico Emerging Markets Ltd as a substantial shareholder. It bought 7.5 million shares of TMC Life Science on Feb 24, raising its stake to 31.479 million shares or 5.23%.
Chemical Company of Malaysia Bhd faces tough times and RAM Ratings downgraded CCM’s long-term ratings for its RM200 million fixed-rate bonds (2002/2009) and RM500 million musharakah commercial papers/medium-term notes programme (2008/2023).
RAM Ratings downgraded the bonds and commercial papers from stable to negative and expressed concerns the credit profile may worsen or be prolonged.