Stocks to watch: Gamuda among companies on investors’ radar today

by **Cals** Tue 01 Apr 2014, 01:23

Business & Markets 2014

Written by theedgemalaysia.com

Monday, 31 March 2014 10:10

KUALA LUMPUR: Based on news flow and corporate announcements last week, the companies that may be in focus today are SapuraKencana Petroleum Bhd, Selangor Properties Bhd, Karex Bhd, Gamuda Bhd and Malaysia Aica Bhd.

SapuraKencana Petroleum is understood to be close to securing as much as US$400 million (RM1.3 billion) in drilling contracts in Africa and Southeast Asia, The Edge weekly, citing sources, reported in its latest edition.

According to the report, the final details are being ironed out, and if all goes well, an announcement could be made to Bursa Malaysia as early as next month.

Selangor Properties’ net profit multiplied eight times to RM155.3 million in the first quarter ended Jan 31, 2014, from RM19.4 million previously. But revenue tumbled 36% year-on-year to RM38.9 million from RM61.1 million.

In a statement to Bursa, the property developer said its higher profit was mainly due to a gain of RM113.1 million from the disposal of equity interest in Help International Corp Bhd.

Karex’s condom production capacity is expected to double to four billion pieces from the current two billion with the launch of its new factory in Pontian, Johor. The world’s largest condom manufacturer held a ground breaking ceremony last Friday for the construction of the factory.

Gamuda will incur divestment losses of RM920 million if the federal government invokes Section 114 of the Water Services Industry Act 2006 to take over Selangor’s water assets and operations, according to several research houses.

Meanwhile, Malaysia Aica has proposed a renounceable rights issue and private placement of new shares in the company. The move is aimed at raising funds for the expansion of its property development business.

In a statement to Bursa last Friday, Malaysia Aica said its rights issue would involve up to 475.1 million shares. The exercise comes with up to 158.4 million free detachable warrants.

Malaysia Aica plans to distribute three rights shares for one existing share held. The company also intends to distribute one warrant for every three rights units subscribed.

This article first appeared in The Edge Financial Daily, on March 31, 2014.