KUALA LUMPUR: The market could see more correction on June 23 as investors continue to worry about the excessive valuations for stocks in the absence of strong corporate earnings while the overnight fall on Wall Street would also impact sentiment.

With the KL Composite Index below the crucial 1,050 level and the weak broader market, this could prompt cautious investors to lock in gains.

The retreat in crude palm oil (CPO) futures would also weigh down interest in plantation stocks. CPO futures tumbled RM128 per tonne to RM2,158 and RM2,157 for August and September.

On Wall Street, stocks suffered their worst one-day loss in two months, dropping the S&P 500 back into negative territory for the year in a broad-based sell-off, as investors reconsidered the health of the economy.

Oil prices fell nearly 4% to below US$67 a barrel, which would weigh down O&G stocks.

At Bursa Malaysia, Berjaya Land posted net loss in the fourth quarter ended April 30, at RM53.98 million compared with net profit of RM631.67 million a year ago. Revenue fell to RM973.18 million compared with RM1 billion.

The lower revenue was mainly due to the lower contribution from the gaming business operated by Sports Toto Malaysia Sdn Bhd (STMSB), a principal subsidiary of BToto.

Meanwhile, EON Capital’s proposed issue of 58.71 million new warrants to Primus Pacific Partners 1 LP was rejected by Bank Negara. The proposed issuance was to be tabled at an EGM on June 25.

EON Cap has been advised by Primus that it intends to appeal the central bank’s decision.  If this appeal is successful, it is EON Cap’s intention to reconvene the EGM. For more, read The Edge Financial Daily.

Meanwhile, Bursa Malaysia’s first initial public offer for this year, Samchem Holdings Bhd will be listed. Its public offer of 6.8 million new shares at an offer price of 71 sen each was oversubscribed by 18.1 times.

Kencana Petroleum Bhd posted  net profit of RM27.64 million for the third quarter (3Q) ended April 30, 2009, up 26% from RM22.02 million a year earlier despite a fall in revenue, due to “better management of costs”.

It has proposed a private placement of up to 10% of its paid-up capital to raise funds to finance its working capital requirements, repayment of borrowings or business expansion at an attractive and substantially lower cost as compared to bank financing.

Kencana expected to raise between RM147.12 million and up to RM150.43 million assuming the indicative issue price of RM1.63 per placement share.

In Malaysian Resources Corporation Bhd, FMR LLC and FIL Ltd ceased to be a substantial shareholder after it disposed of 5.94 million shares on June 18.

As for Damansara Realty Co. Bhd, it has received the go ahead from the High Court of Malaya, confirming the reduction of the capital.

UMW Holdings Bhd is proposing to issue up to a total of RM800 million worth in nominal value of an Islamic Commercial Papers (ICP)/Islamic Medium Term Notes (IMTN) programme (ICP/IMTN programme) and IMTN programme.

UMW plans to use the proceeds to finance domestic or foreign current or future working capital requirements; domestic or foreign current future projects, investments, capital expenditure; and if required, to refinance borrowings.