Eye on index stocks, blue-chips

by **Cals** Mon 06 Jan 2014, 14:42

Business & Markets 2013

Written by Ho Wah Foon of theedgemalaysia.com

Monday, 06 January 2014 10:30

KUALA LUMPUR: Index-linked stocks and blue-chips may continue to rule the market today if they are still considered overbought due to their rise in the past month on window dressing. Many fell last Friday.

The FBM KLCI fell 18.21 points or 1% to end at 1,834.74 last Friday on institutional selling of major blue-chips such as Petronas Dagangan Bhd, Petronas Gas Bhd, Tenaga Nasional Bhd, SapuraKencana Petroleum Bhd, Genting Bhd, Kuala Lumpur Kepong Bhd, PPB Group Bhd, Sime Darby Bhd, Public Bank Bhd, CIMB Group Holdings Bhd and Aeon Credit Bhd.

The local market’s decline was in line with most regional markets, which were consolidating after rising to their highs in recent weeks on more positive global economic data.

Benalec Holdings Bhd informed Bursa Malaysia that Datuk Leaw Tua Choon, a substantial shareholder of Benalec, had 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 Benalec with a 52.9% stake.

Tua Choon 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 the terms and conditions agreed by the three Leaw brothers under a private heads of agreement (HoA) signed by all three of them on Dec 4, 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, 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 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 private HoA, Ah Chye has granted an option, exercisable within a two-year period, to Seng Hai to purchase at least 30% of the indirect interest in Benalec shares currently held by Ah Chye through his shareholding in Oceanview Cove.

This announcement may signal an amicable end to the siblings’ rivalry in Benalec. It could also mean that Seng Chai, the managing director, is now in control of the company.

To recap, on Oct 7, 2013, Benalec terminated the services of directors Tua Choon and Ah Chye.

Both Tua Choon and Ah Chye, elder brothers of Seng Hai, were allegedly found guilty of misconduct on land sale deals.

On Nov 6, an audit committee called for an extraordinary general meeting (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 resigned.

Benalec withdrew its legal action against Tua Choon and Ah Chye in favour of a HoA to set out the framework to settle all suits and claims.

CB Industrial Product Holding Bhd, which builds palm oil mills, has acquired a 100% stake in a firm which intends to undertake oil and gas (O&G) operations, indicating CBIP’s foray into the O&G sector.

In a statement to Bursa Malaysia, CBIP said its subsidiary AVP Engineering (M) Sdn Bhd had 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,” it said.

Perak Corp Bhd said trading in its shares will be suspended with effect from today, pending an announcement.

Last Friday, the stock rose 43 sen or 14% to RM3.49 on a volume of some 3.7 million shares. The net assets per share was RM5.03 as at end-September.

Yinson Holdings Bhd said in an announcement that Lim Han Weng, group chairman and managing director has been re-designated as the group executive chairman and executive director, and Lim Chern Yuan, executive director, has been appointed the group chief executive officer.

Chern Yuan will oversee the overall performance of Yinson together with Han Weng, and holds a key role in formulating the strategic planning of the group.

Han Weng will continue to oversee the business formulation, implementation of corporate strategy and future growth of the group.

This article first appeared in The Edge Financial Daily, on January 06, 2014.