Dec 3rd -Stocks To Watch TNB, Btoto, Ekovest, Axiata, Sime Darby, SPK, DRB-Hicom, Kossan, TSH

by **hlk** Mon 02 Dec 2013, 21:52

Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Monday, 02 December 2013 19:32
A + A - Reset
KUALA LUMPUR (Dec 2): Tenaga Nasional Bhd (TNB) may lead the gainers
tomorrow (Dec 3) after it announced a hike in electricity tariffs today.
The other companies that may also attract market attention tomorrow could
include Btoto, Ekovest, Axiata, Sime Darby, SPK, DRB, Kossan and TSH.
Tenaga Nasional Bhd announced today it will increase electricity tariff in
Peninsular Malaysia effective Jan 1 next year.
For commercial consumers, they will experience an average increase of
16.85%, which ranges from 1.2% to about 18%. Industrial consumers will see
an average increase of 16.85%, ranging from 0.9% to about 17%.
But for domestic consumers, the rate for monthly consumption of up to 200 kWh
(Lifeline Band) is maintained at a subsidised rate of 21.8 sen per kWh.
“For consumers using 300 kWh per month and below, the rate is maintained at
33.4 sen per kWh,” said TNB.
“Hence, there will be no tariff increase to 70.7% of the household consumers
that is 4.6 million consumers.”
As a result of this electricity rate increase, companies that have not priced this
cost in will be impacted.
Berjaya Sports Toto Bhd (Btoto) announced today that it is cancelling its
plans to list its wholly owned subsidiary Sports Toto Malaysia Sdn Bhd as a
business trust on the Singapore Stock Exchange.
“The difficult market conditions brought about by the anticipation of imminent
interest rates rise and the poor performances of listed yield stocks like real
estate investment trusts (REITs) and other business trusts have left the board
of directors with little choice but to call off the exercise,” said the company in a press statement.
In fact, Berjaya Sports Toto has obtained all the approvals to proceed with the listing and all that remained was the execution of the
offering, it said.
“However tentative feedback had fallen short of expectations leading to the board’s decision,” said the company.
Axiata Group Bhd's Indonesian unit PT XL Axiata has secured approval from policymakers there to buy the entire stake in PT Axis
Telekom Indonesia for some RM2.8 billion, including Axis Telekom's debt.
Axiata said it has obtained written approval from Indonesia's communications and informatics ministry for the proposed acquisition.
It said the acquisition will "result in the merger of XL and Axis. The approval includes the condition for the return of 2x10 MHz of the 2.1
GHz (3G) spectrum license to the Government of Indonesia" Analysts said the latest updates bode well for Axiata.
Ekovest Bhd announced it has via its 70% owned subsidiary issued bonds worth a total of RM2.48 billion to part-finance the DUKE
Phase-2 project.
The construction firm said Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi) today issued RM2.3 billion in nominal value Sukuk
Musharakah and RM180 million in nominal value Junior Bonds.
The aggregate proceeds from the issuance of the Sukuk Musharakah and Junior Bonds will part-finance the construction costs,
development costs, financing costs, fees and expenses in relation to DUKE Phase-2.
Ekovest said the Sukuk Programme and Junior Bonds have been accorded ratings of AA-IS and A- with stable outlook, respectively, by
Malaysian Rating Corporation Berhad (MARC).
Sime Darby Bhd is venturing further into Australia’s luxury motor market by buying motor firms there.
Sime Darby Motors Wholesale Australia Pty Ltd (SDMW), a subsidiary of Sime Darby, plans to acquire 70% of the equity stake in LMM
Holdings Pty Limited (LMMH) and 70% of units in the Brisbane BMW Unit Trust (BBUT) for a total of RM66.5 million.
Sime Darby said that it has also entered a share and unit sale deed with LMMH, which operates the BMW, MINI and Lamborghini motor
dealership businesses in Brisbane, and BBUT (a trust which owns the said dealerships).
On the same day, SDMW had also entered into a property sale and purchase agreement with LMMH and BBUT to acquire three
properties for RM169.9 million, necessary for the operations of the businesses.
SapuraKenana Petroleum Bhd (SKP) and DRB-Hicom Bhd, which rose in late trades after news that former premier Tun Dr Mahathir
Mohamad has quit as advisor to national oil company Petronas, may catch attention tomorrow.
While SKP, partly controlled by Mahathir’s son, jumped 18 sen to RM4.45 in heavy trades, DRB-Hicom Bhd, set up by Mahathir’s
government during his reign as prime minister, rose 28 sen to RM2.71.
Other stocks that had benefited from their link with Mahathir may be in focus too.
Kossan Rubber Industries Bhd announced that its unit Ideal Quality Sdn. Bhd today entered into an agreement with Panorama Positif
Sdn. Bhd for the acquisition of a piece of freehold industrial land of 3.7493 hectare in Klang, Selangor, for RM19.37 million.
The rubber products and gloves maker said the acquisition is in line with the group’s strategy to replenish its land bank to generate long
term sustainable income and viability.
TSH Resources Bhd announced that its substantial shareholder and director Datuk Kelvin Tan Aik Pen had on Nov 29 bought 245,000
shares in the company. This purchase has raised his stake in TSH to 11.65%.
TSH rose 8 sen to RM2.89 today.