KUALA LUMPUR: While the KL Composite Index closed just slightly higher on April 13, the broader market was still firm, underpinned by buying of selected stocks with fresh corporate news or ahead of announcements.
However, investors should also be prepared for some profit taking especially after the recent run-up of stocks which had surged more than 20%, according to analysts.
Local funds were said to be picking up conservative stocks like PLUS and Telekom Malaysia, analysts added.
Stocks to watch out for on April 14 are Johor Land, Maybank-OR, Proton, TDM, plantations, Selangor water-related counters, Asia Bioenergy Technologies and Salcon.
Johor Corp (JCorp), together with its subsidiary Damansara Assets Sdn Bhd (DASB), is taking Johor Land Bhd (JLand) private in an exercise that will cost the Johor government-owned entities RM90.1 million. Johor Land closed five sen higher to RM1.42 on April 13 For the full story, get your copy of The Edge Financial Daily
Asia Bioenergy has reported a more than RM3 million deviation from its prospectus net profit forecast for the financial year ended Jan 31, 2009 (FY09). Read more in The Edge Financial Daily.
Maybank-OR, the entitlement to the rights, will cease trading on April 14. Maybank’s corporate exercise involved the renounceable rights issue of 2.12 billion new rights shares at an issue price of RM2.74.
Maybank closed two sen higher at RM4 after falling to a low of RM3.90. Maybank-OR closed unchanged at RM1.06, off the day’s low of 99 sen.
State funds and possibly a foreign fund are said to be buying Maybank-OR and Maybank shares, analysts added.
Proton would continue to see trading interest after the run-up on April 13, ahead of the official launch of its Exora by Prime Minister Datuk Seri Najib Razak on April 15.
Another factor for the run-up in Proton could be a possible consolidation of Proton with Perodua, but this idea had is not entirely new, having first been brought up during the Asian financial crisis.
CIMB Equities Research said while the task of putting the consolidation plans on paper is likely to be challenging,” we think that such exercise would be positive for the national auto companies as operations can be streamlined to cut costs and avoid redundancies, and market share can be expanded.
TDM has proposed first and final dividend of 10.50 sen net per share for FY ended Dec 31, 2008 subject to shareholders' nod at AGM.
Salcon’s proposed 100 million litres wastewater treatment plant in Shandong has been put on hold by Chinese provincial government. Salcon’s unit Salcon Shandong (HK) Ltd did not expected to go ahead with the MoU with the government.
Plantations would continue to attract interest amid some profit taking with the surge in the crude palm oil prices. CPO third month futures rose RM41 to RM2,290.
KPS, Puncak and pipe-maker JAKS would also see continued interest due to the latest development where the federal government is expected to allow the Selangor government to take the lead in the state’s water assets.