Stock to watch: UEM Sunrise and KLK to develop 1,200ha of land in Johor

by **Cals** Mon 10 Feb 2014, 10:19

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Monday, 10 February 2014 10:09

KUALA LUMPUR: Based on Bursa Malaysia announcements and news flow last Friday, stocks to watch today may include the following companies:

UEM Sunrise Bhd and Kuala Lumpur Kepong Bhd (KLK) are forming a joint venture (JV) to develop some 1,200ha (3,000 acres) of freehold land in Johor.

According to UEM Sunrise’s filing with the exchange last Friday, it is planning with KLK to develop 2,500 acres and 500 acres in Kulai Jaya and Johor Baru respectively.

At a press conference last Friday, KLK chief executive officer Tan Sri Lee Oi Hian said the two property projects in Johor will see a combined estimated gross development value of RM20 billion. This takes into account the combined value of RM1.74 billion for the tracts which will be jointly developed by both firms.

Oil palm plantation firms like KLK and PPB Group Bhd may be closely watched as the Malaysian Palm Oil Board is expected to announce this Monday the sector’s January 2014 data.

Reuters reported that Malaysian palm oil stocks in January are expected to fall for the first time since June, thanks to seasonally lower output, but sluggish demand for the tropical oil means inventories are likely to be only slightly lower.

A Reuters survey of five planters and traders showed output in the world’s second-largest producer likely fell to 1.52 million tonnes in January, down 8.8% from a month ago as oil palm trees enter a resting period which results in smaller yields.

Shares of Minetech Resources Bhd, a building material entity, will resume trading today. This follows a trading suspension since since 4.17pm last Friday.

The suspension follows Bursa Malaysia’s unusual market activity query on the sharp rise in the trading volume of Minetech shares recently.

In response, Minetech said the firm was in “the midst of finalising negotiation for a quarry concession in a southern state of Malaysia”.

“The company is continuously exploring more potential collaborations with foreign parties in relation to our core quarry, premix and construction businesses as well as bituminous related products and services,” Mintech said.

Minetech also said it was in talks for a potential project in Cambodia.

Hai-O Enterprise Bhd shares will trade ex-dividend today. The Chinese medicine manufacturer and retailer plans to pay an interim dividend of four sen a share.

The payment date falls on Feb 27.

This article first appeared in The Edge Financial Daily, on February 10, 2014.