Thursday, February 10, 2011

#Stocks to watch:* MRCB, MPHB, MTD, Coastal Contracts

KUALA LUMPUR: Stocks which could see trading interest on Thursday, Feb 10 following fresh corporate developments include''MULTI-PURPOSE HOLDINGS BHD [] (MPHB), Malaysian Resource Corp Bhd (MRCB), MTD CAPITAL BHD [] and COASTAL CONTRACTS BHD [].

Also in focus would be GENTING BHD [] and KUALA LUMPUR KEPONG BHD [] which fell on Wednesday following cautious outlook reports from research houses.

MPHB is seeking to take over its associate Magnum Holdings Bhd for RM1.66 billion as it seeks to have 100% ownership of Magnum to make gaming the group's core business.

MPHB announced it had inked an MoU with the CVC Capital Partners Asia Pacific group to acquire the remaining 49% stake in Magnum and RM674.65 million nominal value redeemable convertible loan stock class C of Magnum (RCULS-C) for RM1.637 billion.

MPHB said the purchase consideration for the acquisitions would be via 343.82 million new MPHB shares at an issue price of RM2.30 per share and RM809.198 million cash.

MPHB also plans to acquire two million Magnum shares or 2% equity interest and RM4.86 million nominal value of RCULS-C together from Magnum's management for RM37.198 million.

MRCB's earnings surged 230% to RM41.50 million for the fourth quarter ended Dec 31, 2010 from RM12.41 million a year ago, boosted by improved profit margin and property development projects.

Revenue rose 53.7% to RM433.12 million from RM281.67 million. It proposed a dividend of 1.5 sen per share.

For the financial year ended Dec 31, 2010, its earnings jumped 94% to RM67.27 million from RM34.62 million. Revenue rose to RM1.967 billion from RM921.62 million.

Its cash and cash equivalents rose to RM487.27 million from RM232.57 million.

MTD Capital's subsidiary MTD Manila Expressways Inc can proceed with the implementation of its 290% toll rate hike along the South Luzon Expressway in the Philippines after a motion seeking to restrain the hike was rejected by the Philippines Supreme Court.

Its subsidiary's legal counsel had on received a resolution dated January 11 from the Court which denied a petition for the issuance of a temporary restraining order (TRO) and/or status quo to restrain the implementation of the toll rate hike of 3.024 pesos or 22 sen per km initial toll rate hike.

Coastal Contracts' units have secured contracts for the sale of 12 vessels for an aggregate value of RM268 million, increasing its total sales to RM760 million up to 2012.

The contracts were for the sale of seven offshore support vessels (OSV), three tugboats and two oil barges for an aggregate value of approximately RM268 million.

Including the new contracts, Coastal Group now has about RM760 million worth of vessel sales orders awaiting delivery to customers up to 2012.

Genting Bhd saw RM1.26 billion erased from its market capitalisation on Wednesday, Feb 9, extending its three-day losses on concerns of a decline in VIP customers to Resorts World Sentosa integrated resorts.

Genting fell 34 sen to RM10.40, the lowest since Dec 20, with 11.98 million shares done.

KLK saw RM491 million erased from its market capitalisation when it shares came under some selling pressure on Wednesday.

It fell 46 sen to RM22.10 with 3.36 million shares done.

Based on the paid-up of 1,067.505 million shares, the decline in the share price translated to a decline of RM491 million in market capitalisation on Wednesday.

RHB Research had trimmed its forecasts for KLK by 8.1%-9.6% for FY09/11-13.

Bank Negara's international reserves rose to RM333.5 billion (US$108.1 billion) as at Jan 31, 2011.

'The reserves position is sufficient to finance 8.7 months of retained imports and is 4.1 times the short-term external debt,' the central bank said on Wednesday.

According to Bank Negara data, this was an increase of RM3.6 billion or US$1.02 billion since Jan 14 when the international reserves amounted to RM329.9 billion (US$106.9 billion).

During the two-week period, the stock market saw companies with big foreign shareholdings coming under selling pressure.

However, it is unknown if the foreign funds had exited Malaysia during this period after they took profit.


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