Nov 16, 2009

Maxis in focus this week

75px-StandardPoors_Headquarters[1] Maxis Bhd makes its debut on Bursa Malaysia on Thursday, Nov 19 and it will be on the investors' radar screen this week.

The telco raised RM11.2 billion, with the final selling price at RM5 per share for institutions and RM4.75 for retail investors.

On the external front, US stocks rose in light volume on Friday to achieve a second straight week of gains as upbeat retail news reinforced hopes for strong sales in the key holiday season.

The Dow Jones industrial average added 0.72% to end at 10,270.47. The Standard & Poor's 500 Index rose 0.57% to 1,093.48. The Nasdaq Composite Index rose 0.88%, to close 2,167.88. For the week, the Dow rose 2.5%, while the S&P 500 advanced 2.3%, and the Nasdaq gained 2.6%.

Investors would also look for directions following the release of the latest batch of earnings from local corporations and also fresh news.

Stocks to watch include MEDIA PRIMA BHD [ ], The New Straits Times Press (M) Bhd, KUMPULAN JETSON BHD [ ], BIMB HOLDINGS BHD [ ], HUBLINE BHD [ ], Sino-Hua An International Bhd, THREE-A RESOURCES BHD [ ] and WCT BHD [ ].

Media Prima raised it stakes in the outdoor advertising business with the acquisition of Kurnia Outdoor Sdn Bhd -- the country's second largest outdoor advertising company -- for RM46.37 million. The acquisition will enable it to increase its total market share in the outdoor advertising business to increase from 33% to 42%.

The integrated media company, which had on Thursday sweetened the deal for its takeover of NSTP, projected revenue from outdoor acquisition to exceed more than RM100 million from the Kurnia acquisition.

The Minority Shareholders Watchdog Group said Media Prima's revised offer for NSTP was positive. It said the revised offer of RM2.90 per share was 7% above adjusted NSTP's net tangible assets per share of RM2.70 (excluding the printing plant and machinery of about RM419 million). NSTP shares rallied when it resumed trading last Friday.

Kumpulan Jetson Bhd's shares has rallied in recent weeks, fuelled by speculation about its involvement in a multi-billion project to be undertaken by common shareholders in Naza Group. The company has come under the scrutiny of the regulators following the surge in the share price and volume.

BIMB clarified its 65.2% subsidiary SYARIKAT TAKAFUL MALAYSIA BHD [ ] would not make any announcement of a new equity partner by the end of the month. Interest in the companies perked up last Friday on speculation of the new partner.

NFC Shipping Fund A LLC, which is registered in Marshall Islands, has increased its stake in Hubline to 123.9 million shares or 6.64% pursuant to the  1:2 rights issue of shares and warrants.

In Sino-Hua An International Bhd, Lembaga Tabung Haji upped its stake to 6.5% or 72.938 million shares after the recent acquisition of 5.52 million shares.

Wilmar International Ltd now owns 61.6 million shares or 16.66% in Three-A Resources, after subscribing for the 20 sen shares at 75 sen each via a private placement.

Kumpulan Wang Persaraan has ceased to a substantial shareholder in WCT after disposing of 3.5 million shares, reducing its stake to 4.76% or 37 million shares.

Investors, however, should heed the caution from RAM Ratings. It said despite more upbeat signs of recovery in the credit market, 16% of RAM Ratings issuers are still on negative rating outlook.

It cautioned certain credits remained weak links where corporates – particularly those in the export and property-related sectors – were not completely out of the woods yet.

RAM Ratings said the replenishment of order books may be protracted and the external sector is unlikely to recover to any large extent in the near term because the G3 countries have yet to fully recuperate.