Corporate deals lift blue chips

Written by Joseph Chin
Monday, 19 October 2009 13:29

KUALA LUMPUR: Fresh corporate deals helped shore up investors' sentiment by the midday break on Monday, Oct 19, with Sarawak Energy and RHB Capital in the news.

At 12.30pm, the FBM KLCI rose 2.48 points to 1,259.25. Turnover was 709.61 million shares valued at RM600 million. There were 297 gainers, 318 losers and 216 stocks unchanged.

Key Asian markets were mostly lower, with Japan's Nikkei 225 down 0.32% to 10, 224.35, Singapore's Straits Times Index slipped 0.2% to 2,702.45 but Hong Kong's Hang Seng Index gained 0.4% to 22,015.6 and Shanghai's Composite Index rising as much as 1.39% to 3,017.97.

Light crude oil rose 19 cents to US$78.7 while crude palm oil futures added RM29 to RM2,207.

At Bursa Malaysia, RHB Capital and Sarawak Energy were voluntarily suspended. RHB Capital has proposed to buy 80% in Indonesia's Bank Mestika for RM1.16 billion, pricing the bank at 3.5 times price-to-book ratio based on the audited net assets of the bank at RM415.4 million as at Dec 31, 2008.

The Sarawak Government plans to take its 64.45% owned Sarawak Energy private which would be 20% over the last traded price, according to sources.

Bernas rose 11 sen to RM1.97 but Tradewinds Malaysia fell two sen to RM2.77 following the latest requirement imposed on the latter over its acquisition of the rice distributor.

Hong Leong Bank rose 16 sen to RM7.30 while also 16 sen higher was Genting to RM7.64.

Poultry based TPC jumped 10.5 sen to 34.5 sen with 36 million shares done, riding on the positive sentiment in the sector following DBE Gurney's recent acquisition of a rival. DBE Gurney was the most active with 38 million shares done, rising five sen to 47.5 sen.

Hovid added two sen to 29 sen and Carotech three sen to 26 sen ahead of a shareholders meeting.

Property counters rose with Metro Kajang up 15 sen to RM1.65 and Encorp 11.5 sen to RM1.03 but E&O fell 16 sen to RM1.28. IGB fell 13 sen to RM2.20 after the surge last Friday.

Disappointment over Media Prima's shares saw NSTP falling 36 sen to RM2.10 while Media Prima rose three sen to RM1.80.

Top Glove lost 12 sen to RM8.28 on mild profit taking and Hume Industries slipping 12 sen to RM3.22.