Bursa Malaysia Stocks to watch : Titan, Iris, KNM, Green Packet and Redtone
Key regional markets may get a lift on Tuesday, March 23 following the firmer overnight close on Wall Street after a dismal day on Monday where sentiment was impacted by monetary tightening across the region and Greece’s persistent debt woes.
On Wall Street, equities rose as passage of landmark legislation to overhaul healthcare drove up pharmaceutical stocks, including those in Europe.
The Dow Jones industrial average climbed 43.91 points, or 0.41 percent, to 10,785.89. The Standard & Poor's 500 Index rose 5.91 points, or 0.51 percent, to 1,165.81 and the Nasdaq Composite Index rose 20.99 points, or 0.88 percent, to 2,395.40.
At Bursa Malaysia, stocks to watch include Titan Chemicals Corp Bhd, Iris Corp Bhd, KNM GROUP BHD [ ] and WiMAX players GREEN PACKET BHD [ ] and REDTONE INTERNATIONAL BHD [ ]. Also in focus could be Lion Industries Corp Bhd, Jerneh and UEM Land Bhd.
Titan Chemicals Corp Bhd has recommended a final tax exempt dividend of 4.5 sen a share, amounting to RM77.75 million for the financial year ended Dec 31, 2009, after its bankers agreed to amend certain terms of a banking facility totalling US$332.5 million, including the restriction of dividend payments for the years 2009 and 2010.
Iris will invest RM36.8 million in PJT TECHNOLOGY [ ] Co., Ltd for a waste incineration plant in Phuket, Thailand. This is a new venture for Iris which expects this to provide alternative revenue. However, there were no details about the returns on investment.
KNM Group Bhd is not extending the exclusivity period for due diligence granted earlier to BlueFire Capital Group Ltd, a company controlled by KNM group managing director Lee Swee Eng.
BlueFire, together with GS Capital Partners VI Fund LP and Mettiz Capital Ltd had proposed to take over KNM for RM3.5 billion. However, they target to conclude talks by April 16, 2010.
Green Packet Bhd will have 75% of the Taiwanese WiMAX market through its partnership with Global Mobile Corp to provide its Intouch Connection Management solution. The solution system would enable Global Mobile to unify its existing dongles, making it easier for the introduction of future models while supporting better ARPU.
Redtone International Bhd’s subsidiary Redtone Technology Sdn Bhd is in talks with a third party to explore its parent’s intention to acquire a company listed in the over-the-counter bulletin board in the US via the injection of Redtone’s China operations.
UEM LAND HOLDINGS BHD [ ] priced its one-for-two rights issue shares at 80 sen per rights share, in an exercise involving the issuance of 1.21 billion rights shares that would raise gross proceeds of RM971.3 million. The rights shares would go ex on April 1, before trading from April 6 to 13 and listing on April 29.
BERJAYA LAND BHD [ ] net loss rose to RM8.57 million in 3Q10, up from net loss of RM356,000 a year earlier. The poorer performance was due to lower contributions from its numbers forecasting operations and hotels and resorts division.
PN17 company TALAM CORPORATION BHD [ ] has agreed to sell off two pieces of land to healthcare education provider Malaysian Allied Health Sciences Academy Sdn Bhd (MAHSA) for RM35.41 million through its subsidiary Galian Juta Sdn Bhd. It said in an announcement to Bursa that the sale proceeds of RM705,672 would be used to reduce its bank borrowings and interest costs.
Tan Sri William Cheng acquired 33.5 million shares of Lion Industries Corp Bhd at the exercise price of RM1.29 per share from Megasteel Sdn Bhd.
Lion Industries said on Monday, March 22 the acquisition of the shares was the remaining stake he was to acquire from Megasteel under a put option of 51 million shares.
ISS CONSULTING SOLUTIONS BHD [ ], which is in the midst of a reverse takeover for FORMIS RESOURCES BHD [ ], yesterday announced the resignation of three executive directors, including the group’s co-founder Christina Ingeburg Orth.
Shares of JERNEH ASIA BHD [ ] rallied to its highest since 2000 in afternoon trade on Monday, in the absence of fresh news except its statement in December over the proposed sale of its stake in its insurance subsidiary.