Tuesday, December 14, 2010

#Stocks to watch:* Proton, Olympia, Kencana, Jetson

KUALA LUMPUR: Key Asian markets including Bursa Malaysia may trend upwards on Tuesday, Dec 14 as investors heaved a sigh of relief following strong data and China's lack of aggressive policy tightening.

Reuters reports industrial output in China in November topped expectations, as banks have been ordered to hold more cash in reserve in a bid to quell inflation.

The Dow Jones industrial average gained 18.24 points, or 0.16 percent, to end at 11,428.56, well off its intraday high of 11,480.03. The Standard & Poor's 500 Index inched up a mere 0.06 of a point, or 0.00 percent, to finish at 1,240.46. But the Nasdaq Composite Index fell 12.63 points, or 0.48 percent, to close at 2,624.91.

Stocks to watch on Tuesday include PROTON HOLDINGS BHD [], OLYMPIA INDUSTRIES BHD [], KENCANA PETROLEUM BHD [] and KUMPULAN JETSON BHD [].

KYM HOLDINGS BHD [] would also stay in focus after it accepted a RM585,911 contract from Vale Malaysia Manufacturing Sdn Bhd to build a jetty which will be part of the massive proposed iron ore distribution centre and pellet plant at Teluk Rubiah, Perak.

Proton will spend ''480m on Group Lotus plc to turnaround the company and the financing will be secured via internally generated and externally secured funding during the turnaround period.

Proton also confirmed its unit Group Lotus plc is teaming up with Renault F1 Team Ltd for the title sponsorship of the Renault F1 Team which will take part in the Formula One World Racing Championship season beginning 2011 onwards.

Duta Yap's Olympia hoping to offer RM2.25 billion to take over Pan Malaysia Pools Sdn Bhd from Tanjong plc. Olympia confirmed it was constantly seeking investment opportunities to complement its businesses though it had yet to make a formal offer.

Kencana Petroleum posted net profit of RM52.35 million in the first quarter ended Oct 31, 2010, up 70% from RM30.82 million a year ago and was upbeat for the current financial year on rising demand for its engineering and fabrication of oil and gas production facilities.

Revenue rose 20% to RM336.96''million from RM281 million a year ago while pretax profit increased by 63% to RM68.10 million from RM41.80 million. Earnings per share were 3.16 sen compared with 3.41 sen.

The two Naza brothers -- Sheikh Mohd Faliq SM Nasimuddin Kamal and Sheikh Mohd Nasarudin have resigned as directors of Kumpulan Jetson Bhd.

Both of them are deemed interested by virtue of their interests in Superior Pavillion Sdn Bhd, which holds 13.12 million Jetson shares. The resignations also came after the two brothers disposed of 4.37 million Jetson shares or 7.22% stake for RM1.05 each on Dec 8.

Malaysian Rating Corp Bhd (MARC) has placed the AIS rating of ZECON BHD [] special purpose vehicle Matang Highway Sdn Bhd's RM70 million sukuk musharakah on MARCWatch Negative.

'The rating action affects RM15.0 million of outstanding Sukuk,' said the rating agency on Monday. Matang's payment obligations under the fully-amortising Sukuk were primarily funded by progress payments collected from the Sarawak Public Works Department.

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