Trading interest may improve on Wednesday, Jan 12 after the local market displayed its resilience amid fresh news from the government's Economic Transformation Programme (ETP) to close marginally lower the previous day while the firmer Wall Street could underpin sentiment.
On Wall Street, energy shares helped the Dow and S&P 500 end a three-day losing streak on Tuesday, even as investors worried rising fuel costs will undercut economic growth.
Earnings reports from smaller companies, including homebuilder Lennar and store chain Sears Holdings, also supported stocks, but volume was low for a second day, raising questions about the sustainability of the longer term rally.
The Dow Jones industrial average gained 34.43 points, or 0.30 percent, to 11,671.88. The Standard & Poor's 500 Index added 4.73 points, or 0.37 percent, to 1,274.48. The Nasdaq Composite Index rose 9.03 points, or 0.33 percent, to 2,716.83.
At Bursa Malaysia, infrastructure companies including GAMUDA BHD [] and IJM Corp, MMC would be in focus as the ETP switched into overdrive in the new year.
Under the ETP, an additional 19 entry-point projects (EPP) and developments are expected to contribute almost RM67 billion in investments.
Oil and gas related companies including Dialog Group and SapuraCrest would continue to garner interest.
Stocks to watch on Wednesday are ASIA PACIFIC LAND BHD [] (AP Land), OLYMPIA INDUSTRIES BHD [], TELEKOM MALAYSIA BHD [], HOVID BHD [], HAP SENG CONSOLIDATED BHD [] and SEG INTERNATIONAL BHD [].
AP Land has received an offer from major shareholder Low Chuan Holdings to buy its entire assets and liabilities for RM305.2 million or 45 sen per share.
Olympia has firmed up its collaboration with Taiwan Lottery Co. Ltd to cooperate in the sales of 3-Digit and 4-Digit games in Taiwan.
Olympia’s unit Lotteries Corporation Sdn Bhd has signed a sales and marketing service agreement with Taiwan Lottery to work together to sell the games for a three-year period, starting Jan 11, 2011 to Dec 31, 2013.
The Court of Appeal has dismissed an appeal by Telekom Malaysia Bhd and its unit TM Net Sdn Bhd over a suit filed by Network Guidance Sdn Bhd in 2009 which was later amended to RM400 million.
TM said the Court of Appeal dismissed with costs TM and TM Net Sdn Bhd’s appeal against the High Court’s decision dated Aug 9, 2010 to dismiss their application to strike-out Network Guidance's writ and amended statement of claim.
LPI CAPITAL BHD [] posted net profit of RM36.94 million in the fourth quarter ended Dec 31, 2010, up 5.6% from the RM34.97 million a year ago, boosted by higher gross premium underwritten.
Revenue rose 6.6% to RM190.74 million from RM178.88 million while net assets per share were RM5.26 versus RM6.54.
It also declared a second single tier interim dividend of 45 sen per share which will go ex on Jan 24 and entitlement date is Jan 26.
Hovid’s shares rose in active trade on Tuesday after the company announced it was teaming up with Sanofi-Aventis Group subsidiary to develop generic drugs.
The collaboration includes the development of dossier, manufacture and supply of the generic drugs of Metformin 850mg MR for treatment of diabetes, and painkiller Tramadol 100mg SR.
Sanofi, via its generic drug arm Winthrop was looking at 30 more products in the next two to five years to be produced for Winthrop to build their business in Southeast Asia.
The estimated value of these 30 products in the project is about RM50 million.
Hap Seng Consolidated’s shares have come under selling pressure as investors sold their shares after it announced a corporate exercise to raise RM1.5 billion. However, investors would now have to assess the fair value of the shares after the recent selldown.
SEG International Bhd is teaming up with Oakfine Development Sdn Bhd to expand the former’s business in Perak
Its unit SEGi University College (M) Sdn Bhd had entered into a heads of agreement with Oakfine for the proposed expansion.
Oakfine plans to develop 60 acres of land in Hulu Kinta while SEGi group plans to expand its core business of providing educational and training services in Perak.
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