Friday, October 8, 2010

#Stocks to watch:* Mudajaya, Tenaga, Dialog, Proton

KUALA LUMPUR: Key Asian markets may open on a subdued note on Friday, Oct 8 after weak commodities and a firmer dollar pressured U.S. stocks on Thursday.

On Wall Street, the Dow Jones industrial average dipped 19.07 points, or 0.17%, to 10,948.58. The Standard & Poor's 500 Index eased 1.91 points, or 0.16%, to 1,158.06. But the Nasdaq Composite Index added 3.01 points, or 0.13%, to 2,383.67.

New U.S. claims for jobless benefits hit a near three-month low last week, suggesting some let up in the labour market's distress but likely not enough to keep the Federal Reserve from easing monetary policy further, Reuters reported.

Initial claims for state unemployment benefits dropped 11,000 to 445,000, the lowest since the July 10 week, the Labor Department said on Thursday, Oct 7. Financial markets had expected claims to edge up to 455,000.

Alcoa Inc kicked off the unofficial start to earnings season after the closing bell. The largest U.S. aluminum producer reported a lower third-quarter profit, but said global markets were strengthening. Its shares rose 3.2 percent to $12.59 in extended trade.

But some lackluster earnings reports weighed on the market during the regular session after PepsiCo Inc trimmed the top end of its earnings forecast, while Marriott International Inc's results failed to beat high expectations. Pepsi was down 3 percent at $66.10 and Marriott slid

At Bursa Malaysia, after the 30-stock FBM KLCI hit a fresh year high of 1,481.45 on late buying of BAT, the market may ease on profit taking.

Stocks to watch on Friday include MUDAJAYA GROUP BHD [], TENAGA NASIONAL BHD [], DIALOG GROUP BHD [] and PROTON HOLDINGS BHD [].

Mudajaya rose 17 sen to RM4.61 before it was voluntarily suspended in late morning. It later announced that plans to team up with the Laos government to undertake a 60 MW hydro power project there.

Meanwhile, the Securities Commission (SC) cautioned Mudajaya and its board of directors to ensure compliance with the securities laws and Bursa Malaysia in disclosing the transactions.

The caution was related to Mudajaya's disclosures about its investments in the independent power plant (IPP) project in India which were made prior to Aug 30, 2010, as the SC viewed these disclosures were inadequate.

Tenaga Nasional has been awarded RM10.16 million in its counterclaim against Prai Power Sdn. Bhd.

Tenaga said on Thursday it was notified by the Kuala Lumpur Regional Centre for Arbitration that the tribunal had dismissed Prai's claim of RM11.86 million, except for RM2.35 million which is allowed together with interest.

Dialog has received the go-ahead from the Johor government to develop the independent deepwater petroleum terminal at Pengerang, Johor for a period of 60 years.

The approval will enable Dialog, Johor government and Vopak to own and develop an independent deepwater petroleum terminal with harbour port, jetty and other marine facilities with water depth up to 26 meters capable of handling ultra large crude carriers.

Proton Holdings Bhd has announced a recall of its Gen.2 and Satria Neo models manufactured between 2004 and 2008 because of a potential'' concerns over a clock spring malfunction.

A local newspaper reported the clock spring connects switches and airbags to the radio, horn and cruise control. The recall affects 15,911 cars of the total 660,000 produced and sold by Proton over the four year period.


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