KUALA LUMPUR: Investors will have to look at companies with good cashflow and cash pile to weather the weak economy at least for three months, as signs are that the second quarter would also be weak.

Bank Negara said the economy was expected to record a marked contraction in 1Q and these conditions were expected to prevail until 2Q.

However, some signs of moderation in the pace of decline in economic activity have emerged. The central bank sees the domestic economy improving in the second half of 2009, supported by stabilisation in global economic conditions and implementation of the fiscal stimulus measures.

This has also become important after the US government announced on April 29 that its economy shrank at a 6.1% annual rate in the first quarter, after contracting 6.3% in the fourth quarter. The US is among the largest export markets for Malaysia's electrical and electronics.

Malaysian investors should look at defensive counters like food manufacturers and also their debt levels and their borrowings.

Plantations are also making money with crude palm oil futures above the RM2,000 level as cost-efficient producers’ operating costs are about RM1,200 per tonne.

Stocks to watch on April 30 are BLD Plantation Bhd, Hap Seng Consolidated Bhd and Hap Seng Plantations Holdings Bhd which proposed dividends for their financial year ended Dec 31, 2008.

Maybank’s additional 2.19 billion new shares will be listed and quoted on April 30. The shares arose from the renounceable  rights issue on the basis of nine rights shares for every 20 held at an issue price of RM2.74 per rights share.

Maybank and the Islamic Corporation for the Development of the Private Sector have mutually agreed to terminate their MOU to jointly explore the feasibility of establishing an international Takaful holding company.

PPB Group’s unit Hexarich sold its entire holding of 32.42 million shares or 8.39% in REDTone International at 22 sen each or RM7.13 million cash.

Meanwhile, Proton Holdings came under focus yesterday, as interest in the national car market continues due to potential corporate exercises.

RHB Research had stripped down its book value and arrived at a new fair value of RM4.52. Given recent developments seem to point towards an improvement in its prospects and cash per share of RM1.90, it reiterated its Outperform call on the stock.

Intergrated Rubber Corporation is selling two pieces of lands located in Kuala Selangor, Selangor for a total cash consideration of RM3.9 million.

Latitude Tree Holdings has revived a listing plan for its Vietnam arm, Latitude Tree (Vietnam) Joint Stock Company (LTV), on Catalist of Singapore Exchange Securities Trading.