KUALA LUMPUR: Some optimism is expected to be seen on Thursday, July 8 after the firmer overnight close on Wall Street which saw the Dow Jones industrial average surge nearly 3%.
US stocks logged their best one-day gain in about six weeks on Wednesday after a bullish forecast from financial company State Street Corp fueled optimism about the coming earnings season and helped the S&P 500 break above a major resistance level.
The DJIA climbed 274.66 points, or 2.82%, to 10,018.28. The Standard & Poor's 500 Index gained 32.21 points, or 3.13%, to 1,060.27. The Nasdaq Composite Index advanced 65.59 points, or 3.13% to 2,159.47.
The timing is also indeed perfect for the listing of Sunway Real Estate Investment Trust (SunREIT). The final retail price is 88 sen.
With an initial investment of PROPERTIES [] worth nearly RM3.73 billion, SunREIT will be the largest listed REIT on the local bourse with units in circulation totalling 2.68 billion.
Analysts said with RM3.73 billion of assets, its more than double the second biggest REIT of Starhill's at only RM1.55 billion
A positive point for SunREIT is that Suncity will only hold 38% upon listing so its free float is 62% and the hope is that it will be a lot more liquid than other Malaysian REITs.
SunREIT has'' assets lined up to be injected into the REIT namely Sunway Giza (shopping mall in Kota Damansara), Sunway Phase 3 and Sunway Hotel Penang as well as others. So it may appeal to some looking for a bigger defensive counter with growth prospects.
Meanwhile, KENCANA PETROLEUM BHD []'s unit has secured a RM201.1 million contract from Houston-based Newfield Peninsula Malaysia Inc. to provide procurement and CONSTRUCTION [] services for topsides.
It said on Wednesday, July 7 the contract comprises of the procurement and construction wellhead platform topside, central processing platform topside, living quarters and bridge for PM329 East Piatu development project, located off Peninsular Malaysia.
Fraser and Neave Holdings (F&N) has received shareholders' nod to divest its entire equity interest in Malaya Glass Products Sdn Bhd for RM738.6 million.
"The completion of transaction is now subject to the Ministry of International Trade and Industry approval next week," F&N CEO Tan Ang Meng said.
F&N proposed to divest its 100% equity interest in Malaya Glass to Berli Jucker Public Company Ltd and ACI International Pty Ltd for US$221.7 million or about RM738.6 million.
F&N would have a net cash of about RM1 billion after the disposal.
EON CAPITAL BHD [] will go ahead and table HONG LEONG BANK BHD []'s offer to acquire the entire assets and liabilities to its shareholders an an extraordinary general meeting to decided later.
EON Cap said the decision was made by the board following consultation with its legal advisers and the board (with the exception of Ng Wing Fai).
Meanwhile, local economic data to be released on Thursday include the May industrial production index and manufacturing sales value.
Bank Negara's monetary policy meeting starts Thursday to decide on the overnight policy rate. It kept the OPR at 2.5% at its last meeting.
The central bank raised the OPR twice this year by 25bps each on March 4 and May 13 to the current level of 2.50%. Recent external developments and official comments/statements raised questions rather than answers with regards to the OPR next direction.
Maybank IB Research said regionally, there is no clear cut evidence of central banks pausing or on holding patterns.
The research house said its 2010 OPR forecast range of 50-75bps hike remains, reflecting "low conviction call" of another 25bps increase on Thursday opposed to the previous two hikes totaling 50bps when it was absolutely confident.
"In the event of BNM leaving the OPR unchanged tomorrow, whether it marks a pause before further increase later this year or an end to the OPR adjustments this year hinges a lot on the wordings of the next meeting," it said.
US stocks logged their best one-day gain in about six weeks on Wednesday after a bullish forecast from financial company State Street Corp fueled optimism about the coming earnings season and helped the S&P 500 break above a major resistance level.
The DJIA climbed 274.66 points, or 2.82%, to 10,018.28. The Standard & Poor's 500 Index gained 32.21 points, or 3.13%, to 1,060.27. The Nasdaq Composite Index advanced 65.59 points, or 3.13% to 2,159.47.
The timing is also indeed perfect for the listing of Sunway Real Estate Investment Trust (SunREIT). The final retail price is 88 sen.
With an initial investment of PROPERTIES [] worth nearly RM3.73 billion, SunREIT will be the largest listed REIT on the local bourse with units in circulation totalling 2.68 billion.
Analysts said with RM3.73 billion of assets, its more than double the second biggest REIT of Starhill's at only RM1.55 billion
A positive point for SunREIT is that Suncity will only hold 38% upon listing so its free float is 62% and the hope is that it will be a lot more liquid than other Malaysian REITs.
SunREIT has'' assets lined up to be injected into the REIT namely Sunway Giza (shopping mall in Kota Damansara), Sunway Phase 3 and Sunway Hotel Penang as well as others. So it may appeal to some looking for a bigger defensive counter with growth prospects.
Meanwhile, KENCANA PETROLEUM BHD []'s unit has secured a RM201.1 million contract from Houston-based Newfield Peninsula Malaysia Inc. to provide procurement and CONSTRUCTION [] services for topsides.
It said on Wednesday, July 7 the contract comprises of the procurement and construction wellhead platform topside, central processing platform topside, living quarters and bridge for PM329 East Piatu development project, located off Peninsular Malaysia.
Fraser and Neave Holdings (F&N) has received shareholders' nod to divest its entire equity interest in Malaya Glass Products Sdn Bhd for RM738.6 million.
"The completion of transaction is now subject to the Ministry of International Trade and Industry approval next week," F&N CEO Tan Ang Meng said.
F&N proposed to divest its 100% equity interest in Malaya Glass to Berli Jucker Public Company Ltd and ACI International Pty Ltd for US$221.7 million or about RM738.6 million.
F&N would have a net cash of about RM1 billion after the disposal.
EON CAPITAL BHD [] will go ahead and table HONG LEONG BANK BHD []'s offer to acquire the entire assets and liabilities to its shareholders an an extraordinary general meeting to decided later.
EON Cap said the decision was made by the board following consultation with its legal advisers and the board (with the exception of Ng Wing Fai).
Meanwhile, local economic data to be released on Thursday include the May industrial production index and manufacturing sales value.
Bank Negara's monetary policy meeting starts Thursday to decide on the overnight policy rate. It kept the OPR at 2.5% at its last meeting.
The central bank raised the OPR twice this year by 25bps each on March 4 and May 13 to the current level of 2.50%. Recent external developments and official comments/statements raised questions rather than answers with regards to the OPR next direction.
Maybank IB Research said regionally, there is no clear cut evidence of central banks pausing or on holding patterns.
The research house said its 2010 OPR forecast range of 50-75bps hike remains, reflecting "low conviction call" of another 25bps increase on Thursday opposed to the previous two hikes totaling 50bps when it was absolutely confident.
"In the event of BNM leaving the OPR unchanged tomorrow, whether it marks a pause before further increase later this year or an end to the OPR adjustments this year hinges a lot on the wordings of the next meeting," it said.
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