Friday, November 19, 2010

#Stocks to watch:* Leong Hup, Emivest, KNM, Tenaga

KUALA LUMPUR: Stocks on Bursa Malaysia are likely to rebound on Friday, Nov 19, underpinned by the firmer overnight close on Wall Street on expectations of a resolution of Ireland's banking crisis.

However, concerns about the impact of China's move to curb imports and keep a rein on inflationary pressure could check the gains.

On Wall Street, U.S. stocks jumped on Thursday on expectations of a resolution of Ireland's banking crisis, but the S&P 500's inability to break through resistance suggests stocks could be in a tight range through the end of the year, according to Reuters.

The Dow Jones industrial average gained 173.35 points, or 1.57 percent, to 11,181.23. The Standard & Poor's 500 rose 18.10 points, or 1.54 percent, to 1,196.69. The Nasdaq Composite added 38.39 points, or 1.55 percent, to 2,514.40.

General Motors Co's shares gained 3.6 percent in its return to public trading and accounted for about 5.1 percent of regular session volume

Stocks to watch on Bursa include LEONG HUP HOLDINGS BHD [] and EMIVEST BHD [], KNM GROUP BHD [], TENAGA NASIONAL BHD [] and Pentamaster Corp Bhd. Other stocks to watch are Hong Leong Industries and IOI Corp Bhd.

Tycoon Tan Sri Quek Leng Chan appears to be competing with his counterpart T Ananda Krishnan in the privatising and relisting game ' this time resurfacing the assets of previously listed Hume Industries (Malaysia) Bhd just seven months after de-listing the company this April.

More details in The Edge FinancialDaily.

Leong Hup and Emivest received takeover offer totaling RM426 million from a major shareholder Emerging Glory Sdn Bhd to acquire all their assets and liabilities.

Leong Hup said on Thursday, Nov 18, the offer for its assets and liabilities was RM318.65 million or RM1.80 per ordinary RM1 share. Emivest said Emerging Glory had offered to acquire all assets and liabilities for RM108 million or 90 sen per ordinary 50 sen share

KNM Group Bhd unit KNM Process Systems Sdn Bhd has won a US$216 million (RM680 million) bid to develop gas condensate fields in Uzbekistan from Lukoil Uzbekistan Operating Company.

KNM received notification on Nov 16 about the successful bid to supply technical documentation, equipment and services for the development of gas condensate fields, that is'' Adamtash, Gumbulak and Djarkuduk Yangi Kizilcha.

The arbitral tribunal has ruled in Tenaga's favour in its dispute with Segari Energy Ventures Bhd (SEV). The tribunal ruled Tenaga was entitled to RM14.51 million out of the RM43.69 million claimed.

'Tenaga's counterclaim of RM50.87 million is partly allowed in the amount of RM17.71 million,' it said.

PLANTATION [] heavyweight IOI Corp posted marginally better results for its 1QFY11 ended Sept 30 as net profit rose 4% year-on-year (y-o-y) to RM498.13 million on higher palm oil prices and lower finance costs

Automated equipment manufacturer Pentamaster posted net loss of RM2.09 million in the third quarter ended Sept 30, 2010 mainly due to a change in sales mix resulting in lower profit margin.

Pentamaster remained cautious in the fourth quarter and expected softer demand for automated equipment. Revenue fell 10% to RM20.06 million from RM22.17 million a year ago due to a decline in demand in the industrial sector for material handling system.


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