KUALA LUMPUR: With the KL Composite Index making a convincing break above the psychological-important 1,000 level, the 100-stock index could attempt to extend its gains.
The fresh positive external data and new corporate news on the home front could also spur fresh buying interest on May 5.
The surge in crude palm oil futures could also underpin the rise in the plantation stocks.
Interest would be on Sime Darby Bhd, UEM Builders Bhd (UEMB, IJM Corporation Bhd and Fraser & Neave Holdings Bhd, banking stocks, water companies and plantation counters.
Sime made an offer to acquire Ramunia Holdings Bhd for RM232.0 million which would be in cash and new shares of Sime Darby Engineering Sdn Bhd.
The price tag included assets and liabilities for total provisional purchase consideration of RM232.0 million to be satisfied by RM46.2 million cash and RM185.8 million equivalent value of new ordinary shares in SDE representing 20% of the shares in the enlarged SDE.
Ramunia had requested for a suspension in trading as it reviewed the terms of the acquisition.
Meanwhile, the consortium comprising of Shimizu-Nishimatsu-UEMB-IJM had accepted the contract from the federal government for the Pahang-Selangor raw water transfer project, tunnel and related works for RM1.3 billion.
The construction period is five years and the notice to commence work will be issued to the consortium in due course.
The awarding of contracts would also stir interest in water-related stocks and pipe manufacturers including Puncak Niaga, KPS and also JAKS Resources.
The surge in blue chips prices would also continue to buoy banking stocks.
Meanwhile, Fraser & Neave Holdings should attract interest after it declared gross dividend of 17 sen per share. For 2Q, it posted net profit of RM53.28 million in the second quarter ended March 31, 2009, up 11.2% from RM47.91 million a year ago.