Friday, July 16, 2010

#Stocks to watch:* Scomi Eng, CapitaMalls, Olympia

KUALA LUMPUR: Key regional markets could see cautious trading on Friday, July 16 in line with the lacklustre overnight close on Wall Street.

On Wall Street, US stocks ended little changed on Thursday, recouping losses late in the day, led by a sudden turnaround in Goldman Sachs and BP.

The Dow Jones industrial average dipped 7.41 points, or 0.07 percent, to end at 10,359.31. The Standard & Poor's 500 Index added 1.31 points, or 0.12 percent, to 1,096.48. The Nasdaq Composite Indexwas off 0.76 of a point, or 0.03 percent, to 2,249.08.

Despite the turnaround, the Dow and Nasdaq both ended a hair lower, snapping a seven-day winning streak.

Stocks to watch on Bursa Malaysia are SCOMI ENGINEERING BHD [], CapitaMalls Malaysia Trust (CMMT), OLYMPIA INDUSTRIES BHD [] and the callable bull certificates issued by CIMB Bank over AIRASIA BHD [], Gamuda'' Bhd, GENTING BHD [], Berjaya Corp Bhd.

Also on the watch list will be Selangor water companies after the federal government's Pengurusan Aset Air Bhd (PAAB) said it hoped to complete its planned acquisition of water assets in Selangor by the end of the year.

Scomi Engineering is rewarding its shareholders with a total gross special interim dividend of 29.5 sen per share. The special interim dividend will be paid on Aug 26.

It declared an interim dividend of six sen per share (gross) less 25% income tax; an interim tax exempt dividend of 11 sen per share; and an interim single tier exempt dividend of 12.5 sen per share.

The dividends would be paid to shareholders whose names appear on the record of depositors on July 30.

Meanwhile, CMMT will make its debut. The institutional price was fixed at RM1 per unit and the final retail price at 98 sen per unit.

Under the offer for sale, the 65.5 million units offered to the public, there were 3,480 applications for 70.11 million units, representing a subscription rate of 1.07 times.

Olympia could see some trading interest over its proposed disposal of its entire 100% stake in Dairy Maid Resort & Recreation Sdn Bhd.

Olympia acknowledged and confirmed the terms and conditions on the appointment of Messrs. Rahim & Co. to conduct a second valuation on Menara Olympia and the adjoining leased car park.

The valuer has been appointed by Bursa Malaysia Securities Bhd to determine the market value of the property for the purpose of submission to Bursa.

The time frame to complete the valuation is 15 working days from the date of confirmation of instruction, receipt of documents/information as required by the valuer and inspection of the property.

More details about the significance of the announcement in Friday's The Edge FinancialDaily.

CIMB Bank has issued 50 million callable bull certificates each over the shares of AirAsia Bhd, GAMUDA BHD [], Genting Bhd and Berjaya Corp Bhd and they will listed on Friday, July 16.

The issue price for AirAsia'' bull certificates is 16 sen; Gamuda at 15 sen, Genting'' 16.5 sen, and Berjaya Corp 16 sen.

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