KUALA LUMPUR:'' Key regional markets are expected to see cautious trade on Tuesday, Nov 16 as concerns the Federal Reserve may scale back its'' $600 billion bond buying program muted optimism over two big takeover bids. At Bursa Malaysia, the flurry of corporate news are expected to spur trading interest in the counters.
The S&P 500 held above its 20-day moving average, now near 1,196 and marking a potential support level, though the index closed slightly lower. The Dow Jones industrial average edged up 9.39 points, or 0.08%, at 11,201.97. The Standard & Poor's 500 Index was off 1.46 points, or 0.12%, to 1,197.75. The Nasdaq Composite Index slipped 4.39 points, or 0.17%, to 2,513.82.
Stocks to watch on Tuesday include TIME DOTCOM BHD [] (TdC), Pacific & Orient Bhd's (P&O), Emas Kiara Bhd, KENCANA PETROLEUM BHD [], GREEN PACKET BHD [] and SIME DARBY BHD []. Corporate results expected on Tuesday are FABER GROUP BHD [], Jobstreet Corp Bhd, MEDIA PRIMA BHD [] and MALAYSIAN PACIFIC INDUSTRIES [] Bhd.
Time dotCom is undertaking a RM339 million acquisition exercise of several companies in the telecommunication services and infrastructure industry in a bid to transform itself into a regional player. As part of the corporate exercise, it is undertaking a share capital reduction, capital repayment and the acquisition of four companies as it seeks to expand into the regional telecommunications industry.
The exercise involves a share capital reduction of its paid-up of RM2.53 billion, comprising of 2.53 billion shares of RM1 each by cancelling 90 sen of the par value, followed by a share consolidation of the 2.53 billion 10 sen shares into 506.15 million shares, on the basis of five shares of 10 sen each to one share of 50 sen each in Time dotCom.
Time dotcom also entered into two memoranda of agreements with the shareholders of Megawisra Sdn Bhd and Global Transit Ltd (Labuan) to acquire four companies for a total of RM286.5 million via the issuance of new shares and RM38.4 million cash.
The four companies are Global Transit Communications Sdn Bhd for RM106 million, Global Transit Ltd for RM105 million, Global Transit (HK) Ltd and Global Transit Singapore Pte Ltd for RM1 each and AIMS Group for RM128 million in cash and shares. It also proposed a capital repayment of RM50.61 million or two sen per TdC share.
Meanwhile, Pacific & Orient Bhd's (P&O) insurance business is believed to still be on the radar of other foreign parties despite Prudential Holdings Ltd dropping out of the acquisition talks for the local general insurer. More details in Tuesday's The Edge FInancialDaily.
Emas Kiara is selling its geosynthetic manufacturing business for RM100 million cash to a unit of Royal Ten Cate N.V., which is listed on NYSE Euronext.
Emas Kiara's subsidiaries signed a sale and purchase agreement with Tencate Geosynthetics Asia Sdn Bhd to divest their geosynthetic manufacturing business. Upon completion of the proposed disposal, Emas Kiara would retain their business related to installation and engineering services of the products.
Kencana Petroleum has secured contracts worth RM275 million from Sarawak Shell Bhd for the fabrication of compression modules and tie-in modifications. The contract involves modifications for Sarawak Shell's operated fields off the coast of Sarawak.
Green Packet posted net losses of RM13.71 million in the third quarter ended Sept 30, 2010, a decline from the net loss of RM31.84 million a year ago and expects margin erosion in the competitive broadband and voice business segments. Of concern would be the borrowings which could weigh down the company despite an increase in revenue.
Revenue rose 60% to RM100.89 million from RM63.03 million. Loss per share was 2.1 sen versus eight sen. Green Packet said the net loss was lower in the just ended quarter due to an improvement in turnover.
Green Packet's total borrowings as at Sept 30 totalled RM237.01 million. Its total turnover was the nine-month period was RM277.71 million compared with RM160.99 million while loss per share was RM56.82 million compared with RM81.93 million.
A fiery Sime Darby Bhd's AGM is in store on Tuesday as investors are expected to vent their fury over the conglomerate's past questionable projects and corporate governance failures, which the management under acting president and CEO Datuk Mohd Bakke Salleh will have to address.
Among the questions which the Minority Shareholders Watchdog Group will be seeking are details of forensic audit report and summary of critical findings and governance failures; progress of legal action and also lapses in corporate governance, breakdown in internal control.
Amway (Malaysia) Holdings Bhd net profit for the third quarter ended Sept 30, 2010 rose marginally to RM21.51 million from RM20.48 million a year ago due to increase in sales revenue.
Revenue for the quarter rose to RM191.5 million from RM174.87 million last year, while earnings per share were 13.08 sen.
Amway declared a third interim single tier dividend of 9 sen net per share and special interim single tier dividend of 30 sen net per share for the financial year ending Dec 31, 2010.
The S&P 500 held above its 20-day moving average, now near 1,196 and marking a potential support level, though the index closed slightly lower. The Dow Jones industrial average edged up 9.39 points, or 0.08%, at 11,201.97. The Standard & Poor's 500 Index was off 1.46 points, or 0.12%, to 1,197.75. The Nasdaq Composite Index slipped 4.39 points, or 0.17%, to 2,513.82.
Stocks to watch on Tuesday include TIME DOTCOM BHD [] (TdC), Pacific & Orient Bhd's (P&O), Emas Kiara Bhd, KENCANA PETROLEUM BHD [], GREEN PACKET BHD [] and SIME DARBY BHD []. Corporate results expected on Tuesday are FABER GROUP BHD [], Jobstreet Corp Bhd, MEDIA PRIMA BHD [] and MALAYSIAN PACIFIC INDUSTRIES [] Bhd.
Time dotCom is undertaking a RM339 million acquisition exercise of several companies in the telecommunication services and infrastructure industry in a bid to transform itself into a regional player. As part of the corporate exercise, it is undertaking a share capital reduction, capital repayment and the acquisition of four companies as it seeks to expand into the regional telecommunications industry.
The exercise involves a share capital reduction of its paid-up of RM2.53 billion, comprising of 2.53 billion shares of RM1 each by cancelling 90 sen of the par value, followed by a share consolidation of the 2.53 billion 10 sen shares into 506.15 million shares, on the basis of five shares of 10 sen each to one share of 50 sen each in Time dotCom.
Time dotcom also entered into two memoranda of agreements with the shareholders of Megawisra Sdn Bhd and Global Transit Ltd (Labuan) to acquire four companies for a total of RM286.5 million via the issuance of new shares and RM38.4 million cash.
The four companies are Global Transit Communications Sdn Bhd for RM106 million, Global Transit Ltd for RM105 million, Global Transit (HK) Ltd and Global Transit Singapore Pte Ltd for RM1 each and AIMS Group for RM128 million in cash and shares. It also proposed a capital repayment of RM50.61 million or two sen per TdC share.
Meanwhile, Pacific & Orient Bhd's (P&O) insurance business is believed to still be on the radar of other foreign parties despite Prudential Holdings Ltd dropping out of the acquisition talks for the local general insurer. More details in Tuesday's The Edge FInancialDaily.
Emas Kiara is selling its geosynthetic manufacturing business for RM100 million cash to a unit of Royal Ten Cate N.V., which is listed on NYSE Euronext.
Emas Kiara's subsidiaries signed a sale and purchase agreement with Tencate Geosynthetics Asia Sdn Bhd to divest their geosynthetic manufacturing business. Upon completion of the proposed disposal, Emas Kiara would retain their business related to installation and engineering services of the products.
Kencana Petroleum has secured contracts worth RM275 million from Sarawak Shell Bhd for the fabrication of compression modules and tie-in modifications. The contract involves modifications for Sarawak Shell's operated fields off the coast of Sarawak.
Green Packet posted net losses of RM13.71 million in the third quarter ended Sept 30, 2010, a decline from the net loss of RM31.84 million a year ago and expects margin erosion in the competitive broadband and voice business segments. Of concern would be the borrowings which could weigh down the company despite an increase in revenue.
Revenue rose 60% to RM100.89 million from RM63.03 million. Loss per share was 2.1 sen versus eight sen. Green Packet said the net loss was lower in the just ended quarter due to an improvement in turnover.
Green Packet's total borrowings as at Sept 30 totalled RM237.01 million. Its total turnover was the nine-month period was RM277.71 million compared with RM160.99 million while loss per share was RM56.82 million compared with RM81.93 million.
A fiery Sime Darby Bhd's AGM is in store on Tuesday as investors are expected to vent their fury over the conglomerate's past questionable projects and corporate governance failures, which the management under acting president and CEO Datuk Mohd Bakke Salleh will have to address.
Among the questions which the Minority Shareholders Watchdog Group will be seeking are details of forensic audit report and summary of critical findings and governance failures; progress of legal action and also lapses in corporate governance, breakdown in internal control.
Amway (Malaysia) Holdings Bhd net profit for the third quarter ended Sept 30, 2010 rose marginally to RM21.51 million from RM20.48 million a year ago due to increase in sales revenue.
Revenue for the quarter rose to RM191.5 million from RM174.87 million last year, while earnings per share were 13.08 sen.
Amway declared a third interim single tier dividend of 9 sen net per share and special interim single tier dividend of 30 sen net per share for the financial year ending Dec 31, 2010.
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