Jan 6th - Stocks To Watch Index stocks, blue chips, Benalec, CBIP, Perak Corporation and Yinson

by **Cals** Sat 04 Jan 2014, 01:35

Stocks To Watch Index stocks, blue chips, Benalec, CBIP, Perak Corporation and Yinson

Business & Markets 2013

Written by Ho Wah Foon of theedgemalaysia.com

Friday, 03 January 2014 21:27

KUALA LUMPUR (Jan 3): Index-linked stocks and blue chips may continue to rule the market on Monday (Jan 6) if they are still considered as overbought due to their rise over the past month on window-dressing activities. Many fell today.
At market close today, the FBM KLCI fell 18.21 points or 1% to end at 1,834.74 on institutional selling of major blue chips such as Petronas Dagangan and PetGas, Tenaga Nasional, SapuraKencana Petroleum, Genting, plantation stocks (KLK, PPB and Sime Darby), Public Bank and CIMB, Aeon Credit.
The fall of the local market was in line with most regional markets today, which were consolidating after rising to their highs in recent weeks on more positive global economic data.
But in addition to these two factors, the local market sentiment may be hit if senior government politicians and their followers heed UMNO Selangor’s proposal to demonstrate outside Catholic churches during their prayers on Sunday, as this may stir up unwarranted religious tension in this multi-racial country.
Benalec Holdings Bhd informed Bursa Malaysia that Datuk Leaw Tua Choon, a substantial shareholder of Benalec, has sold 482 shares in Oceancove Sdn Bhd to Datuk Leaw Seng Hai and 1,218 Oceancove Shares to Datuk Leaw Ah Chye.
Oceancove is a major shareholder of the company holding 52.90% of the shares in Benalec.
Tua Choon has also sold his entire shareholding in Oceanview Cove Sdn. Bhd. to Seng Hai. Oceanview is the ultimate holding company of Benalec and the holding company of Oceancove.
“The disposals are made in accordance with terms and conditions agreed by the three Leaw brothers under a private Heads of Agreement (HoA) signed by all three of them on 4 December, 2013.
“In consequence of Datuk Leaw Tua Choon’s disposal of all his shares in Oceancove and Oceanview, he has thereby ceased to be a substantial shareholder of Benalec,” said a statement from Benalec.
As a result, Leaw Seng Hai has raised his indirect interest in Benalec shares from 15.34% or 123,760,341 shares to 23.71% or 191,261,841 shares, while Leaw Ah Chye has increased his indirect interest in Benalec shares from 14.82% or 119,501,499 shares to 21.26% or 171,501,499 shares.
Pursuant to the said private Heads of Agreement, Leaw Ah Chye has granted an option, exercisable within a 2-year period, to Leaw Seng Hai to purchase at least 30% of the indirect interest in Benalec shares currently held by Leaw Ah Chye through his shareholding in Oceanview Cove Sdn. Bhd.
This announcement may signal an amicable end to the sibblings’ rivalry in Benalec. It could also mean that Seng Chai, the managing director of the company, is now in solid control of the management.
To recap, Benalec had on Oct 7, 2013, terminated the services of directors Tua Choon and Ah Chye.
Both Tua Choon and Ah Chye, who are the elder brothers of Seng Hai, were allegedly found guilty of misconduct on land sale deals.
On Nov 6, the Audit Committee called for an EGM to remove Tua Choon and Ah Chye as directors. However, the EGM was called off on Dec 4, after Tua Choon and Ah Chye had resigned.
Accordingly, Benalec withdrew legal actions against Tua Choon and Ah Chye in favour of a HoA to set out the framework to settle all legal suits and claims.
CB Industrial Product Holding Bhd (CBIP) has acquired a 100% stake in a firm which intends to undertake oil and gas (O&G) operations. The acquisition indicates CBIP's foray into the O&G sector.
In a statement to the exchange today, CBIP which builds palm oil mills, said its subsidiary AVP Engineering (M) Sdn Bhd yesterday bought TPG Oil & Gas Sdn Bhd from Tengku Ardy Esfandiari Tengku A. Hamid Shah and Ku Azhar Ku Ahmad for RM2.

"Currently, the intended business activity of TPG-OG is to engage in oil and gas businesses.”

Perak Corporation Bhd said trading in its shares will be suspended with effect from 9.00 a.m. of Monday, January 6, pending an announcement.
If the announcement is major and market-moving, the share price of Perak Corporation is likely to react and move accordingly.
But by market close today, the stock had already risen 43 sen or 14% to RM3.49 per share on trades of some 3.7 million shares. The net asset per share of the company was RM5.03 as at end-September.
Yinson Holdings Bhd announced today various new appointments of Yinson Group’s executive positions and principal officers.
Lim Han Weng, group chairman and managing director has been re-designated as the group’s executive chairman and executive director, and Lim Chern Yuan, executive director of the group, has also been appointed as the group’s chief executive officer.
As Yinson group CEO, Lim Chern Yuan will oversee the overall performance of the group together with the Lim Han Weng, and holds key strategic role in formulating the strategic planning of the group.
“We believe that the new appointments will further enhance and ensure a proper and well-structured management hierarchy, supported by good corporate governance,” said Lim Han Weng, who will continue to oversee business formulation, implementation of corporate strategy and future growth of the group.