Stocks to watch: Maybank, MMC, TMI, Bolton - Edge

KUALA LUMPUR: While the country waits for more details of the second stimulus budget to be announced on March 10 at 4pm, stocks which could see trading interest include Malayan Banking Bhd, MMC Corporation Bhd, TM International Bhd and Bolton Bhd.

Maybank share price has been sold down over its proposed rights issue. It closed at fresh lows on March 6, down 28 sen to RM4.54 after it fixed the price of its proposed rights issue at RM2.74 per share.

The rights issue of RM2.74 is a discount of 34.4% from the theoretical ex-rights price of RM4.17 per share and a discount of 43.2% to March 5's closing price of RM4.82.

It also announced on March 6 it was committed to long term payout of dividends, which were 40% to 60% of profit attributable to shareholders.

MMC could be in focus after HwangDBS Investment Bank recommended that non-interested MMC shareholders vote in favour of the resolution to acquire Senai Airport Terminal Services Sdn Bhd (SATS) at the forthcoming EGM.

The independent advice circular was issued on March 6 just a few days after the Minority Shareholders Watchdog Group (MSWG) said MMC could seek for a second valuation of the SATS acquisition. This was following protest from minority shareholders.

HwangDBS Investment Bank, in its analysis, said MMC Group’s earnings for the financial year ending Dec 31, 2009 was expected to be negatively impacted by RM44 million, or earnings per share (EPS) dilution of one sen per share. This was based on the assumption the proposed SATS acquisition was entirely funded by bank borrowings

However, it expected the proposed SATS acquisition was expected to contribute positively to the future earnings of the enlarged MMC Group.

OSK Investment Research maintained its Trading Buy call on MMC at RM1.40 for now ahead of the EGM in the final week of March with a fair value of RM2.39.

Meanwhile, the Employees Provident Fund Board had been picking up shares of
TM International Bhd, whose price was battered down in recent days. The EPF Board bought nearly 1.8 million shares on March 2 and 3.

The EPF had also stepped up its acquisition of shares in KNM Group Bhd, increasing its stake to 349.89 million shares or 8.89%.

In Bolton Bhd, executive chairman Datuk Mohamed Azman Yahya’s interest had increased following the acquisition of eight million shares on March 3 via Gajahrimau Capital Sdn Bhd.

The recent transaction increased his direct and indirect stake to 20.06% or 58 million shares.

Companies which have stepped up their share buyback include Tan Chong Motor Holdings Bhd, Parkson Holdings Bhd, Hunza Properties Bhd, Choo Bee Metal Industries Bhd and Mudajaya Group Bhd.