Key Asian markets are expected to extend their upward trend on Friday, Sept 3 as investors’ confidence is bolstered by the latest US data that it would avoid a double-dip recession.
On Wall Street, the Dow Jones industrial average added 50.63 points, or 0.49%, to 10,320.10. The Standard & Poor's 500 Index rose 9.81 points, or 0.91%, to 1,090.10. The Nasdaq Composite Index gained 23.17 points, or 1.06%, to close at 2,200.01.
Stocks to watch on Friday include SUNWAY CITY BHD [] (SunCity), THREE-A RESOURCES BHD [], ORIENTAL HOLDINGS BHD [] and PPB GROUP BHD []. Other stocks to watch are banks including AMMB HOLDINGS BHD [], LINEAR CORPORATION BHD [], JCY International Bhd, SILVER BIRD GROUP BHD [] and ETI Tech Bhd
SunCity has proposed to acquire a 45% stake in theme park operator Sunway Lagoon Sdn Bhd (SLSB) for RM128.57 million and raise its shareholding to 96%.
SunCity, which owns 51% of SLSB, said it was acquiring the shares from Datuk Lim Say Chong and Oh Kim Sun respectively. “By owning 96% of SLSB and with the same management effort, SunCity will have greater share of the future earnings of SLSB group,” it said
The Edge FinancialDaily reports that Oriental Holdings which is not on the radar screens of most analysts and fund managers, saw its net cash position hitting a record RM1.93 billion as at June 30, 2010, an increase of more than 100% from RM944.68 million as at Dec 31, 2006.
As for PPB Group Bhd, it is expanding its flour and feed milling division. It will set up an additional flour mill each in Indonesia and Vietnam with an investment of about US$50 million (RM156.5 million).
InsiderAsia, in its analysis, says Three-A Resources' (RM1.80) expansion plans, both local and overseas, remain on track. “Completion of the new manufacturing facilities will support growth over the next few years. Thus, we remain upbeat on the company's longer-term prospects and believe patient investors would be rewarded,” it said.
AMMB Holdings Bhd said it would not cut profit margins to gain market share in the mortgage business.
"Competition is key but we are not one of those that offer cut-throat rates to get the business. We are cautious on the profitability," said group managing director Cheah Tek Kuang.
On Thursday, Linear Corporation’s share price rallied to a more than two-month high of 15 sen, as investors’ sentiment in the Practice Note 17 company perked up with the entry of a white knight.
The Edge Financial Daily reported three new directors were appointed to help turn around the company. They are Datuk Ling Keak Ming, independent and non-executive director; Lim Hun Beng, non-independent and non-executive director; and Adam Bin Bachek, independent and non-executive director were appointed yesterday
JCY International’s share price rebounded on Thursday after CIMB Research said the recent selldown was unjustified and instead viewed this as an opportunity to accumulate the shares.
CIMB Research continued to rate the stock an OUTPERFORM with an unchanged target price of RM1.88, still based on 12.0 times CY11 P/E.
“Potential catalysts for the stock include (1) turnaround of the hard disk drive sector, (2) more meaningful contributions from Hitachi and Samsung, and (3) positive news on its successful penetration into Toshiba,” it said.
RAM Ratings has reaffirmed the A2 rating of SILVER BIRD GROUP BHD [ ]’s RM70 million Serial Bonds (2005/2012), as well as the A2/P2 ratings of its RM30 million commercial papers/medium-term notes programme (2005/2012). However, the ratings agency maintained the negative outlook on the long-term ratings.
In ETI Tech, its director Dennis Chuah sold 2.11 million shares at 28 sen each on Aug 30, reducing his stake to 14.89% or 101.39m shares.
Written by Joseph Chin
The Edge Malaysia
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