Wednesday, April 6, 2011

#Stocks to watch:* RHB Cap, YSP, TM, Press Metal

KUALA LUMPUR: Stocks on Bursa Malaysia may see some downside pressure on Wednesday, April 6 after China's central bank raised interest rates on Tuesday and the lacklustre overnight close on Wall Street.

China's benchmark one-year deposit rates will be lifted by 25 basis points to 3.25 percent and one-year lending rates will be raised by 25 basis points to 6.31 percent, the People's Bank of China said in a statement on its website. The rises take effect from April 6.

China and Hong Kong markets will reopen on Wednesday.

On Wall Street, the S&P 500 failed to break a key technical resistance level for a second day on Tuesday as low trading volume raised further questions about the market's strength.

The Dow Jones industrial average slipped 6.13 points, or 0.05 percent, to end at 12,393.90. The Standard & Poor's 500 Index inched down just 0.24 of a point, or 0.02 percent, to 1,332.63. The Nasdaq Composite Index rose 2.00 points, or 0.07 percent, to 2,791.19.

Stocks to watch are RHB CAPITAL BHD [], Y.S.P. Southeast Asia Holding Bhd, TELEKOM MALAYSIA BHD [] (TM) and PRESS METAL BHD [].

RHB Capital Bhd's AGM and EGM which will be held at 9.30am Wednesday should be an interesting affair following the latest corporate developments.

RHB Cap is seeking a further extension of six months until Oct 19 to complete a proposed rights issue that would raise some RM1.3 billion cash via the issuance of new shares.

Meanwhile, Abu Dhabi Commercial Bank, which is considering selling its 25-percent stake in Malaysia's RHB Capital, hired Goldman Sachs and BOA-Merrill Lynch as advisors, its chief executive said.

Ala'a Eraiqat said on Tuesday that a firm decision on the sale of the stake, valued at $1.4 billion, had yet to be made.

The proposed sale is expected to draw interest from Chinese banks and other Asian buyers due to Malaysia's rapidly growing economy, though lack of control could deter strategic buyers from bidding aggressively, the sources said.

Y.S.P. Southeast Asia Holding Bhd plans to raise up to RM45.22 million from a corporate exercise involving the issuance of rights shares. It would issue 45.22 million new rights shares at RM1 each on the basis of one rights share for every three shares held.

YSP said the proposed rights issue will enable the YSP group to raise funds for its ongoing expansion to widen and extend its reach of its existing and new range of products in local as well as overseas markets

Telekom Malaysia Bhd (TM) has received the Securities Commission's (SC) approval to issue Islamic debt papers with a combined limit of up to RM2.0 billion for capital expenditure requirements.

TM said the Islamic commercial papers (ICP) programme and an Islamic medium term notes (IMTN) programe would have respective tenures of seven and 15 years from the date of first issue, have been assigned ratings of P1 and AAA respectively by RAM Rating Services Bhd.

Press Metal's Phase-2 expansion of its aluminium smelting operation will be at the new Samalaju Industrial Park, Bintulu, Sarawak as it seeks to meet the growing demand of aluminium raw material in this Asia region.

PMB via its 80% owned Press Metal Sarawak Sdn Bhd, has developed its Phase-1 aluminium smelting project in Mukah, Sarawak. The new expansion will be relocated to the new Samalaju Industrial Park, Bintulu, Sarawak as being approved by the Sarawak State Planning Authority.

CypARK RESOURCES BHD [] has secured a project from Putrajaya Holdings Sdn Bhd for the proposed rectification works in Precint 5, Putrajaya for a contract sum'' of RM5.05 million.

No comments:

Post a Comment