Stocks To Watch - Sime, Tenaga, Mitrajaya, Ingenuity, TRC Synergy, tourism-linked stocks, AFG

KUALA LUMPUR (April 3): Based on news flow and corporate announcements today, the following companies may be in focus tomorrow:

Sime Darby Bhd will attract attention after South Africa's Competition Commission said today it raided the local offices of food manufacturers Unilever and Malaysia's Sime Darby as part of a probe into collusion.

The commission conducted the "search and seizure operation" as part of an investigation into collusion in the manufacture and supply of edible oil and margarine, AFP reported.

"The Commission has reasonable grounds to believe that information relevant to this investigation is in the possession of employees of the two companies," it added, referring to Anglo-Dutch Unilever and Malaysia-based Sime Darby.

Tenaga Nasional Bhd (TNB), which had fallen by as much as 4% to a low of RM11.26 today after Morgan Stanley downgraded the national utility to "underweight" and cut its earnings per share (EPS) forecast by 10%, may continue to be in focus.

In its research note, Morgan Stanley said there was uncertainty over TNB’s sustained reform implementation with rising risk of adverse fuel mix and cost inflation.

The research house said reform and cost control upside had already been priced in after a 48% outperformance in TNB’s share price. The firm's target price (TP) for TNB is RM12.20.

Tenaga, the second largest loser today, closed at RM11.30, down 44 sen or 3.75%, on heavy trades.

Mitrajaya Holdings Bhd announced today that its unit Pembinaan Mitrajaya Sdn Bhd has been awarded a construction contract worth RM277 million.

The company said that it had on 2 April 2014 accepted from Symphony Hills Sdn Bhd, a member of the UEM Sunrise Group, the award for the proposed construction of the Main Building Works of  Housing Block 5 at Symphony Hills, Cyberjaya, for RM277.42 million.

“The contract is expected to contribute positively to MHB Group’s future earnings,” said the statement.

The duration of construction is 29 months and the job is expected to be completed by August 2016.

The contract is expected to contribute positively to MHB Group’s future earnings, said the company.

Ingenuity Consolidated Bhd said it was not aware of any reason for the unusual market activity (UMA) in relation to the high volume of trades in its securities.

Bursa Malaysia had earlier slapped the firm with a UMA query, after the stock topped others in trades for the past trading days.

The ICT service provider said it was not aware of any corporate development or rumour that may account for the UMA.

At market close, the stock lost one sen to 8.5 sen on heavy trades of some 199 million shares. It was the most active stock today.

TRC Synergy Bhd has secured two KL prime land real estate contracts with a collective value of RM414.6 million from SP Setia Group Bhd's unit KL Eco City Sdn Bhd.

TRC said the contracts formed a portion of a mixed development within Kampung Haji Abdullah Hukum along Jalan Bangsar.

TRC said the first contract valued at RM222.3 million involved construction of diaphragm walls, basement and podium, besides earth work, and piling. The project, starting April 7, 2014, is scheduled for completion by March 6, 2017.

The second contract, valued at RM192.3 million, is expected to start on January 7, 2016 and completed by October 6, 2017.

Tourism and aviation related stocks may come under focus again for the wrong reason after the MH370 incident: two foreign women were kidnapped from a resort off the coast of Semporna, Sabah, last night.

The two are a 29-year-old Chinese national and a 40-year-old Filipino resort worker.

Following the kidnappings, security forces have been placed on full alert along its sea border with southern Philippines.

There were 60 tourists from China at the resort at the time of the incident.

One of the tourists at the resort, a newspaper journalist from China, reported that many of the holidaymakers were in their rooms at various parts of the resort when the incident occurred.

Alliance Financial Group Berhad (AFG) announced that its indirect 100%-owned Alliance Investment Bank Berhad has entered into a conditional share sale and purchase agreement with Hwang-DBS (Malaysia) Berhad today to buy the latter’s 51% equity interest in HwangDBS Vickers Research for RM393,945.

DBS Vickers Securities Holdings Pte Ltd (DBS Vickers) is the remaining 49% shareholder in HDBSV.

The acquisition will enhance the Alliance’s equity research capabilities and its institutional broking business by leveraging on DBS Vickers’ network of overseas clients to further expand the group’s investment banking business, especially the stock broking institutional business, said AFG.

Written by Ho Wah Foon of theedgemalaysia.com