Saturday, July 24, 2010

#Stocks to watch:* MISC, Tanjung Offshore, M3Nergy, Mudajaya

KUALA LUMPUR: Stocks are expected to kick off the new week, starting July 26 on a firmer note after global stocks rose, underpinned by solid corporate earnings.

On Wall Street, the Dow Jones industrial average climbed 102.32 points, or 1%, to end at 10,424.62 -- just about 4 points shy of its close at the end of 2009.

The Standard & Poor's 500 Index rose 8.99 points, or 0.82%, to finish at 1,102.66 -- or about 13 points below its year-end 2009 close. The Nasdaq Composite Index gained 23.58 points, or 1.05%, to close at 2,269.47.

Reuters reported global stocks rose after fewer-than-expected European banks failed stress tests. Under the worst stress scenario, the seven weaker banks -- five of them from Spain -- would face a capital shortfall of 3.5 billion euros ($4.5 billion).

Market expectations were 10 bank failures -- two from Germany, one from Greece and about six from Spain -- and capital shortfalls totaling at least 100 billion euros.

Stocks to watch on Monday include MISC BHD [], TANJUNG OFFSHORE BHD [] (Tanjung Offshore), M3NERGY BHD [], MUDAJAYA GROUP BHD [] and Tanjong plc.

MISC's proposed listing of its unit Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) will involve offering 25% or 408 million shares of the enlarged paid-up of 1.6 billion shares.

The listing exercise will see MHB declaring a cash dividend payout of RM300 million to MISC via dividend income received from MMHE. MISC has cash of RM7.85 billion in the fourth quarter ended March 31, 2010.

MISC said the listing vehicle would be MSE Holdings Bhd (MHB), which holds 100% of MMHE. It said the listing exercise would involve the sub-division of the MHB's existing paid-up of RM16.22 million, comprising of 16.22 million RM1 shares, into 50 sen shares of 32.44 million.

Ekuiti Nasional Bhd, which is investing RM73.4 million in Tanjung Offshore Bhd (Tanjung Offshore), hopes to see the latter's revenue double in the mid-to-long term. Ekuinas' investment horizon as a strategic investor was between three and five years.

The board of directors of M3nergy Bhd has concurred with its financial adviser Hwang DBS Investment Bank Berhad (HDBS) that the conditional take-over offer from Adamus Avenue Sdn Bhd is not fair and not compelling.

M3nergy said the offer did not seem to reflect the underlying value of the company as well as the prospects.

Mudajaya could see trading interest on news report the Securities Commission is 'looking into the affairs' of the company following a complaint.

The SC was reportedly to be looking into Mudajaya's affairs, which was part of its continuing vigilance and proactive surveillance of corporate development of listed companies.

In power-gaming Tanjong plc, it plans to double its power generation capacity from the current 4,000 megawatt (MW) in the next four to five years. ''It plans to expand its power generation assets in the Middle-east, North Africa and Asia.

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