KUALA LUMPUR: Investment sentiment is expected to lacklustre on Tuesday, April 27 in the absence of strong positive newsflow, with the exception of selected counters, and also due to the weaker overnight close on Wall Street.
US stocks edged lower on Monday as bank shares fell on fears that financial reform making its way through Congress will curb profits, while Caterpillar's strong results buoyed the Dow, according to Reuters.
The Dow Jones industrial average edged up 0.75 point, or 0.01 percent, to close at 11,205.03. The Standard & Poor's 500 Index dropped 5.23 points, or 0.43 percent, to 1,212.05. The Nasdaq Composite Index . lost 7.20 points, or 0.28 percent, to 2,522.95.
At Bursa Malaysia, the FBM KLCI managed to close above the 1,340 level while the futures added three points to 1,343. Stocks to watch include Top Glove Corp Bhd, Tradewinds Corporation Bhd and TH Plantations Bhd. Others are Hong Leong Bank Bhd, Eastern Pacific Industrial Corporation Bhd and Allianz Malaysia Bhd.
Top Glove proposed a bonus issue of up to 348 million shares, making it the third glove manufacturer, after Supermax Corp Bhd and Kossan Rubber Industries Bhd, to do so this year.
Analysts said the bonus issues undertaken by these glove makers would enhance their attractiveness as it would not only reward existing shareholders but would also draw foreign shareholders into these stocks due to improved liquidity.
Tradewinds Corporation Bhd has terminated an over seven-year-old joint venture agreement with Oxbridge Height Sdn Bhd in relation to the development of about 704 acres of the former’s land in Tebrau, Johor after the latter had defaulted on its private debt securities (PDS) and non-settlement of a guaranteed payment.
TH Plantations Bhd's net profit doubled to RM17.8 million for the first quarter ended March 31, from RM8.37 million a year earlier.
Revenue jumped 29% to RM77.22 million from RM59.98 million a year earlier despite lower sales volume thanks to higher prices of crude palm oil and palm kernel compared with the year before. Earnings per share also doubled to 3.65 sen from 1.72 sen a year ago.
Hong Leong Bank Bhd’s announcement last Friday of a proposed rights issue to raise up to RM1.6 billion to help finance its proposed acquisition of EON Capital Bhd (EONCap) dims the prospects of it offering equity as part of the takeover, say analysts.
Eastern Pacific Industrial Corporation Bhd's (EPIC) net profit rose 24% to RM9.77 million in its first quarter of ended March 31, 2010 from RM7.90 million a year earlier due to better performances at its port operations and oil and gas activities.
Allianz Malaysia Bhd has proposed a renounceable rights issue of new irredeemable convertible preference shares (ICPS) of RM1 each to raise gross proceeds of about RM611 million that will be used to repay a loan, to increase the capital base of its subsidiaries and for the group's working capital.
The proceeds will be used to repay the credit facility amounting to RM490 million extended by Allianz SE for the acquisition of Commerce Assurance Bhd, which is now known as Bright Mission Bhd. The acquisition was completed in August 2007.
UEM Builders Bhd and Ministry of Finance-owned (MoF) Jambatan Kedua Sdn Bhd (JKSB) finally signed a RM1.55 billion agreement for the construction of part of the second Penang Bridge, officially ending a two-year disagreement on certain matters in relation to the project.
Property developer Ken Holdings Bhd is planning to venture into the hotel business, beginning with its prime three-acre (1.2ha) plot of land in Batu Ferringhi, Penang, to build a recurring income base.
HSBC says it does not rule out the likelihood of Malaysia and Singapore seeing double-digit gross domestic product (GDP) growth this year amidst expectations of stronger exports and more robust consumer spending.