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Wednesday, December 22, 2010

Stocks to Watch: Boustead, L&G, Adventa, Olympia

KUALA LUMPUR: Asian stock markets could face some pressure on Thursday, Dec 23 based on developments in the Korean peninsula as well as in China but on Bursa Malaysia, several companies with fresh corporate news could see some trading interest, despite the slowdown in the newsflow on Wednesday.

South Korea announced land and sea military exercises on Wednesday — including its largest-ever live-fire drill near North Korea — just as tension on the peninsula was beginning to ease after Pyongyang's attack on a southern island, according to Reuters.

The land drill, involving three dozen mobile artillery guns, six fighter jets, multiple launch rocket systems and 800 troops, the largest number of personnel in a single peace-time exercise, will take place on Thursday and is likely irritate the North, it said.

Reuters also reported that China would harden measures against speculation in its red-hot property market by intensifying scrutiny of foreign investment in the sector, citing a government website posting. The Ministry of Commerce, which oversees foreign investment in China, said it would increase checks on property investment involving foreign currencies and ban foreign investors from betting on capital gains, it said.

On Bursa Malaysia, stocks to watch include BOUSTEAD HOLDINGS BHD , L&G, ADVENTA BHD, OLYMPIA INDUSTRIES BHD.

Boustead could be in focus after it entered into a memorandum of understanding (MoU) to acquire a 51% stake in MHS Aviation Bhd (MHSA) for a proposed cash consideration of RM100 million subject to a comprehensive due diligence. MHS provides air transportation, flight support, flight training, engineering and technical services to oil and gas companies

L&G plans a property project with an estimated gross development value of RM555 million following its latest corporate move to acquire land and PROPERTIES [] within the Tuanku Jaafar Golf and Country Resort in Negeri Sembilan for RM25 million cash. The site would be for an upscale residential development .

Adventa's net profit for the fourth quarter ended Oct 31, 2010 surged 220% to RM11.8 million from RM5.36 million a year ago, on the back of a 22% improvement in revenue to RM91.02 million. The glove maker proposed a first and final tax exempt dividend of 7 sen per share for the financial year ended Oct 31, 2010.

For the full-year, Adventa's net profit more than doubled to RM35.8 million from RM16.96 million, while revenue rose 19% to RM336.17 million from RM282.74 million.

Olympia on Tuesday maintained that it was still pursuing its bid to acquire gaming company Pan Malaysia Pools Sdn Bhd from tycoon T. Ananda Krishnan's Tanjong Plc. The statement was issued to refute an online news report that Olympia had fallen out of the race to acquire Pan Malaysia Pools.

Source: The Edge, 23 Decem 2010

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