Tuesday, September 20, 2011

Stocks to watch 20110920: Sime, BRDB, Kimlun, BCorp, Cypark

KUALA LUMPUR: Investors would be bracing for another volatile day on Tuesday, Sept 20 after the FBM KLCI fell to a 53-week low on Monday, weighed by some foreign selling.

The 30-stock KLCI fell 17.82 points or 1.24% to 1,413.12, with investors worried whether the index could fall further. A total of RM11.35 billion was wiped out from the market capitalisation, reducing it to RM1,210.57 billion.

Reuters reported Malaysia saw net foreign outflows of US$15.8 million on Monday with financials AMMB Holdings and CIMB Group falling 1.3% and 6.9% respectively.

Meanwhile, SIME DARBY BHD [] saw RM1.8 billion erased from its market capitalisation after its closed 30 sen lower to RM7.70, the lowest in 13 months on some foreign selling and also concerns about the outlook for equities.

An analyst with ECM Libra Research said: "It (the selling) may be due to foreign shareholding selling and maybe the lasting effects of the E&O (Eastern & Oriental Bhd) deal.”

Stocks to watch on Tuesday include Bandar Raya Development Bhd (BRDB), Kimlun Corporation Bhd and BERJAYA CORPORATION BHD [] (BCorp).

CypARK RESOURCES BHD [] is set to launch the master plan on renewable energy development for Negeri Sembilan on Wednesday.

In BRDB, it board has accepted the offer from major shareholder, Ambang Sehati Sdn Bhd, to acquire four of BRDB's investment assets for RM430 million net of liabilities of RM484 million.

BDRB said following the proposed disposal, BRDB would distribute part of the proceeds to the shareholders via a net cash dividend of 80 sen per share.

Kimlun has accepted the letter of award for a RM51 million contract from Nusajaya Lifestyle Sdn Bhd to build a retail mall and ancillary buildings in Medini Iskandar, Johor Bahru.

The scope of works comprises of building CONSTRUCTION [] and ancillary works for the Mall which will be due to be completed by July 2012.

Berjaya Corporation Bhd had proposed to issue of up to RM767.49 million via new debt notes with up to 767.49 million warrants.

It had proposed a renounceable rights issue of up to RM767.49 million nominal value of new irredeemable convertible unsecured loan stocks (ICULS) with up to 767.49 million warrants.

The warrants would be on the basis of one RM1 nominal value of new ICULS together with one warrant for every six BCorp shares. The coupon rate is 5% per annum.

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