KUALA LUMPUR (Dec 7): Investor sentiment at the local stock market is likely to remain cautious on Wednesday in line with the overall tepid mood at key regional markets a day earlier after Standard & Poor's warned it might downgrade top-rated Germany and other euro zone countries.
S&P had placed the ratings of 15 euro zone countries on credit watch negative, including the region's two biggest economies Germany and France, and said "systemic stresses" are building as credit conditions tighten in the 17-nation region.
However, analysts say they are cautiously optimistic that European policymakers would make some progress in finding a solution to the eurozone debt crisis at the summit later this week, and as such the decline at the stock market was not expected to be severe, with the exception of further shocks like credit rating downgrades.
On Bursa Malaysia, among the stocks that could be in focus are GUOCOLAND (MALAYSIA) BHD [], CB INDUSTRIAL PRODUCT HOLDING [] Bhd (CBIP), EKOVEST BHD [], MALAYSIAN RESOURCES CORP []oration Bhd and Wijaya Baru Global Berhad.
Guocoland’sunit is acquiring 46.72 acres of land worth RM107.8 million in the Cheras locality as part of its land bank expansion plan for future developments.
Its unit Ace Acres Sdn Bhd had entered into a sales and purchase agreement with Bond Corporation Sdn Bhd to acquire nine parcels of land located in Cheras and Mukim Petaling.
Meanwhile, CBIB secured a RM17.88 million contract from Felda Palm Industries Sdn Bhd for the conversion of the Trolak palm oil mill in Sungkai, Perak. Its unit Modipalm Engineering Sdn Bhd has accepted the letter of award to build and install the mill.
Ekovest - MRCB JV Sdn Bhd (EMJV) was picked the be the project delivery partner (PDP) by the government for to assist in the implementation and delivery of the River of Life (ROL) project.
EMJV is a joint venture between Ekovest Bhd and Malaysian Resources Corporation Bhd, where Ekovest will subscribe to 60% of the issued and paid up capital of the Company, while MRCB will subscribe to the remaining 40%. EMJV said it would earn a maximum fee of RM22 million or 1% of the total projected works to be delivered over three years.
It will also receive monetary incentives for the work done and the contract is expected to contribute positively to its future earnings.
Meanwhile, Wijaya Baru received its shareholders’ nod to acquire US$80 million in timber and palm oil concessions from Wealth Gate Pte Ltd and Suffolk Pte Ltd.
Wijaya will acquire 100% of Suffolk and Wealth Gate's shares, giving Wijaya ownership of two 40,000 ha plots of land in Irianjaya which can be converted into oil palm PLANTATION []s.
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