The strong overnight close on Wall Street is expected to provide more buying momentum for key Asian markets, including Bursa Malaysia, on Thursday, Sept 2 as the FBM KLCI hit fresh 30-month highs.
Wall Street posted its best day in eight weeks on Wednesday, as investor mood brightened after better-than-expected factory data from the United States and China, according to Reuters.
Economically sensitive sectors like industrials and basic materials posted large gains, after the Institute for Supply Management showed U.S. factory activity grew faster than forecast.
The Dow Jones industrial average rose 254.75 points, or 2.54 percent, to 10,269.47. The Standard & Poor's 500 Index added 30.96 points, or 2.95 percent, to 1,080.29. The Nasdaq Composite Index gained 62.81 points, or 2.97 percent, to 2,176.84.
Meanwhile, Bank Negara Malaysia (BNM) will hold its Monetary Policy Committee Meeting and economists said it is likely to keep the overnight policy rate unchanged at 2.75% after three consecutive rate hikes since March this year.
At Bursa Malaysia, stocks to watch include NAIM HOLDINGS BHD [], SAPURACREST PETROLEUM BHD [], JCY International Bhd and SWEE JOO BHD [].
Naim Holdings Bhd and Samsung Engineering Co. Ltd have received a latter of award from Petronas Carigali Sdn Bhd for the Sabah Oil And Gas Terminal (SOGT) project.
The value of the contract received by the unincorporated joint venture was US$766.39 million. The contract involved the provision of engineering, procurement, CONSTRUCTION [] and commissioning (EPCC) services.
The SapuraCrest Petroleum Bhd group has secured US$134 million in contracts to provide a self-erecting drilling rig and a bareboat charter.
The company said on Wednesday, Sept 1 that its subsidiary, Tioman Drilling Company Sdn Bhd had received a letter of award from Carigali Hess Operating Company Sdn Bhd and Carigali PTTEPI Operating Company Sdn Bhd to deploy the rig.
Its subsidiary Crest Tender Rigs Pte Ltd was awarded a bareboat charter from Seadrill UK Ltd to perform works under Seadrill Group’s contract with Chevron for development drilling offshore Thailand.
The Edge FinancialDaily reports that JCY International Bhd's share price continued to plunge on Wednesday, falling 7.25% or 7 sen to 89.5 sen. This brings its losses over the last two weeks to a staggering 40% from around the RM1.50 level.
More details in The Edge FinancialDaily about the labour dispute and the management's response.
Swee Joo Bhd shares tumbled after the company and its subsidiaries triggered the Practice Note 17 criteria and posted losses. It failed to provide a solvency declaration.
Last Monday, the shipping company announced that the firm and its subsidiaries Johan Shipping Sdn Bhd and Asia Bulkers Sdn Bhd were in default in payment pursuant to Practice Note 1 of the Main Market listing rules.
It also posted net losses of RM6.57 million in the third quarter ended June 30, 2010. For the nine-month period, its net losses were RM38.82 million
The Edge FinancialDaily also reported that PN17-status company LINEAR CORPORATION BHD [] is beginning to see some light at the end of the tunnel after the entry of a white knight with the appointment of three new directors, who are planning to put the company back on its feet again.
PETRA PERDANA BHD [] has secured its shareholders’ approval to raise between RM53 million and RM69.56 million from a proposed renounceable rights issue of new shares with free warrants.
Proceeds raised through this exercise will go towards retiring some borrowings and enhancing Petra Perdana’s cash flow management. It will also strengthen Petra Perdana’s capital base.
SUNWAY HOLDINGS BHD []’s unit Sunway Construction Sdn Bhd has secured two contracts valued at RM69.88 million from Putrajaya Holdings Bhd to undertake in the federal government administrative centre.
BINA PURI HOLDINGS BHD [] group has secured contracts totaling RM18.94 million, bringing its current order book to RM2.62 billion.
Its subsidiary Bina Puri Construction Sdn Bhd had accepted the letter of award from Lintasan Mayang Development Sdn Bhd for the construction of 33 units (three blocks) of two-three storey shop-offices in Kuala Menggatal, Kota Kinabalu, Sabah for a contract sum of RM17.37 million.
Bina Puri said with the latest awards, the group's current order book totaled RM2.61 billion, having secured new projects worth RM1.52 billion so far this year.
Written by Joseph Chin
The Edge Malaysia
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