June 16th - Stocks To Watch CIMB, Ideal Jacobs, Top Glove, Ire-Tex, UOA Development

by **Cals** Mon 16 Jun 2014, 03:00

Stocks To Watch CIMB, Ideal Jacobs, Top Glove, Ire-Tex, UOA Development

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Friday, 13 June 2014 18:22

KUALA LUMPUR (June 13): Based on Bursa Malaysia announcements and news flow today, stocks to watch this Monday (June 16) may include the following companies:

CIMB Group Holdings Bhd is among five banks appointed to arrange the UK government's GBP200 million (RM1 billion ) maiden sovereign Islamic bond or sukuk. Reuters reported that the British government had mandated banks to arrange a five-year 200 million pound ($336 million) sukuk - the world's first Islamic bond to be issued by a Western sovereign.

In January, Britain appointed HSBC to arrange the deal and it has now added four more banks to the syndicate — Qatar's Barwa Bank, Malaysia's CIMB, National Bank of Abu Dhabi and Standard Chartered.

Trading of Ideal Jacobs (M) Corp Bhd shares has been suspended between today and this Tuesday (June 17). Ideal Jacobs said it intended to announce a corporate exercise, which would lead to a significant change in the firm's business direction.

An industry source told theedgemalaysia.com that Ideal Jacobs was eyeing an entry into the oil and gas sector.

The source said Ideal Jacobs, which was planning to acquire an oil and gas services company, was finalising a heads of agreement to undertake a reverse takeover exercise.

Top Glove may be closely watched after analysts downgraded the stock ahead of the company's third quarter results announcement this Tuesday (June 17).

AllianceDBS Research Sdn Bhd cut its earnings forecast for Top Glove by 8%, 9% and 12% for financial years ending August 31, 2014 (FY14), FY15 and FY16 respectively after imputing weaker volume growth.

AllianceDBS also reduced its target price (TP) for Top Glove shares to RM4.30 from RM5.49. “We cut TP to RM4.30, pegged to 13 times CY15F earnings per share, after the earnings downgrade. Yield is supportive at 3%,” AllianceDBS said.

Ire-Tex Corp Bhd's 470 million irredeemable convertible unsecured loan stock (ICULS) and 58.8 million warrants under the company's proposed rights issue will be listed on Bursa Malaysia this Monday.

Ire-Tex, which manufacturers protective packaging materials for computers and electronic products, said the ICULS would be traded under the stock number and short name of 7183LA and IRETEX-LA respectively. The warrants will be listed under 7183WA and IRETEX-WA.

UOA Development Bhd will trade ex-dividend this Monday. The property developer plans to pay its first and final single-tier dividend of 13 sen a share for financial year ended December 31, 2013.

The payment date falls on July 17 this year.

UOA Development's net profit fell 62% to RM44.7 million in the first quarter ended March 31, 2014 from RM119.1 million a year earlier as new property sales fell. Profit also declined comparative to last year's higher base, arising from investment property revaluation gains registered then.