Thursday, March 10, 2011

#Stocks to watch:* Oil and gas, plantations, Media Chinese, Atis

KUALA LUMPUR: Stocks on Bursa Malaysia could see some hesitancy among investors on Thursday, March 10 after the weaker overnight close on Wall Street while oil prices remained at record high levels.

Reuters reported Brent oil prices jumped on Wednesday, weighing on global stocks, as escalating violence in Libya increased fears that higher energy costs could choke the global economic recovery.

Brent oil jumped 2.55% to US$115.94 a barrel as fighting in Libya intensified and OPEC saw no need for an emergency meeting to consider raising output. Worries that the unrest could spread further in the Middle East also left investors jittery.

On Wall Street, a weak outlook from Texas Instruments weighed on the Nasdaq on Wednesday and pushed an index of chip makers below a key technical level in a worrisome sign for the market's six-month uptrend. The PHLX semiconductor index fell 3% to close below its 50-day moving average, which represents medium-term momentum, for the first time since September.

The Dow Jones industrial average dipped 1.29 points, or 0.01 percent, to finish at 12,213.09. The Standard & Poor's 500 Index shed 1.80 points, or 0.14 percent, to end at 1,320.02. The Nasdaq Composite Index fell 14.05 points, or 0.51 percent, to close at 2,751.72.

Stocks to watch include banks, oil and gas related stocks, PLANTATION []s, Atis Corp Bhd, MEDIA CHINESE INTERNATIONAL LT []d (MCIL) and STAR PUBLICATIONS (M) BHD [].

Meanwhile, in Envair Holdings Bhd, Ng King Kau has emerged as a substantial shareholder in the ACE Market listed company with 9.739 million shares or 8.22% after acquiring four million shares on March 4.

Prime Minister Datuk Seri Najib Razak said on Wednesday applications to increase foreign shareholding for commercial banks would be considered on an individual "merit basis".

He said the foreign shareholding cap for the local commercial banks would be on an individual 'merit basis'. However, there would not be any changes to the Banking and Financial Institutions Act 1989 in the interim as it is an administrative issue.

O&G stocks advanced on Wednesday, led by Petronas Chemicals after it was upgraded and expectations are that they would continue to generate trading interest, riding on high oil prices.

Petroliam Nasional Bhd's recent statement that it would invest RM250 billion over five years to explore new oil fields and for asset replacement would continue to underpin sentiment.

Plantation stocks would be in focus as analysts expect crude palm oil to trade around RM3,500 and possibly hit RM4,000 this year, supported by strong demand.

Meanwhile, three Atis Corp Bhd shareholders, owning a combined 14.4% stake, have requested the company hold an EGM to remove Messrs MAZARS as auditors.

Atis had received three special notices from Sa Chee Peng, Lee Kok Keong and Lim Beng Guan requesting for the EGM to remove MAZARS and appoint Messrs KPMG as new auditors for the financial year ended Dec 31, 2010. Sa holds 5.66% stake representing 8.30 million shares; Lee 5.22% or 7.67 million shares and Lim 3.52% (5.17 million shares).

The Edge FinancialDaily reports that Star Publications (M) Bhd has been well regarded as the most profitable media group for years. Its strong and steady cash flow that allows for generous dividend payments is the envy of the industry.

However, Media Chinese International Ltd (MCIL), which has the most Chinese titles in the world, seems to be catching up in the game; its earnings are not that far from the top spot.

A number of new media-related companies are expected to join the fray on Bursa Malaysia this year as they look to ride on the rising advertisement expenditure (adex) this year.

MALTON BHD [] has received the Securities Commission's approval for the issuance of up to RM156.39 million nominal value of RCSLS under the proposed rights issue.

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