Stocks to watch: IOI Properties to be FBM KLCI component stock tomorrow

by **Cals** Mon 20 Jan 2014, 18:52

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Monday, 20 January 2014 09:52

KUALA LUMPUR: Based on news flow and corporate announcements last Thursday, the following stocks may draw excitement today.

IOI Properties Group Bhd will be a component stock in the FBM KLCI index effective Jan 21, but UEM Sunrise Bhd will be removed.

Bursa Malaysia said in a statement that the constituent changes followed the listing of IOI Properties, which now ranks the biggest among property stocks.

The stock exchange said IOI Properties will be included into the FBM Emas Syariah Index and the FBM Hijrah Syariah Index.

Hong Leong Capital Bhd (HL Cap) has been slapped with an “unusual market activity” (UMA) query by Bursa on the “unusual rise” in its share price in recent months.

The stock continued to rise sharply in thin trades last Thursday even after the UMA. At the close, the share price rose 96 sen or 8% to end at RM12.80 on a low volume of 13,800 shares. The counter soared from RM1.71 a year earlier.

HL Cap is the holding company of Hong Leong Investment Bank Bhd and Hong Leong Asset Management Bhd. Last year, tycoon Tan Sri Quek Leng Chan failed to privatise the company.

Due to the hefty rise in share price, there could be profit-taking today. But if the privatisation bid is revived, the stock price could stay high.

AWC Bhd announced that its unit Ambang Wira Sdn Bhd (AWSB) received a letter from the federal government that it had agreed in principle for AWSB to provide management and maintenance services for government buildings in the “southern zone and Sarawak zone”.

Perdana Petroleum Bhd announced it had secured a vessel contract from Talisman Malaysia Ltd worth RM50 million. The contract is for the charter of one unit of anchor handling tug supply vessel.

CIMB Group Holdings Bhd may gain some attention after Moody’s said its move to raise RM3.55 billion via a private placement of 500 million shares to support growth is “credit positive”.

The new capital will not only help to enhance the position of the local banking units of CIMB Group and increase their loss absorption capacity, but will also reduce the leverage of the group, said the international ratings agency.

CIMB’s share price rebounded slightly last Thursday after the report. Last Wednesday, the price plunged after analysts warned that the financial group’s earnings per share could be diluted.

The group said it will issue the new shares by the end of this month.

Brahim’s Holdings Bhd announced that it had entered into a memorandum of understanding (MoU) with Labuan Halal Hub Sdn Bhd (LHH) to produce and supply halal meals to offshore oil platforms and vessels.

The MoU, which is effective in 2014, also covers the distribution of Brahim’s ready-to-eat meals and cooking sauces to Sabah, Sarawak and Brunei.

LHH is the developer and operator of the Labuan halal hub and promoter of the “Halal” certification on products and services, according to Brahim’s.

XiDeLang Holdings Ltd (XDL) is targeting a double-digit growth for its revenue and net profit for the financial year ending Dec 31, 2014. Its managing director and chief executive officer Ding Peng Peng said he is optimistic about the prospects this year, as he expects the sports industry in China to pick up in the second half.

XDL signed a distributorship agreement with Universal Fitness and Leisure Sdn Bhd (UFL) last Thursday. The company expects this partnership to contribute RM50 million in revenue and RM10 to RM20 million in net profit in its first year of operations in 2014.

Through this partnership, XDL will introduce its sports shoes, apparels and accessories into the Malaysian market. UFL holds distributorships of several premier brands of sporting products and has a dealer network of about 300 in Malaysia.

XDL will be opening 10 exclusive stores in Malaysia this year.

Last Thursday its share was up six sen or 10.6% to 62.5 sen and its XDL-WA warrants rose 1.5 sen or 6% to 27 sen in active trading.

This article first appeared in The Edge Financial Daily, on January 20, 2014.