Stocks to watch: AMMB, Mudajaya, Widetech, Transocean

KUALA LUMPUR: Investors may adopt a cautious stance in the week ahead after unemployment in the US rose above 10% and this will also raise concerns about weakening US consumer spending.

On Wall Street, the Dow Jones industrial average gained 0.17% to end at 10,023.42 last Friday. The Standard & Poor's 500 Index rose just 0.25% to 1,069.30 while the Nasdaq Composite Index added 0.34% to close at 2,112.44. For the week, both the Dow and the S&P 500 rose 3.2%, while the Nasdaq climbed 3.3%.

At Bursa Malaysia, stocks to watch include AMMB Holding, Mudajaya Group, Widetech, Transocean, auto stocks and IJM.

AMMBhas raised its expectations of delivering its profit for FY ending March 31, 2010, after posting net profit of RM240.16 million in 2Q ended Sept 30, 2009, up 4.4% from RM230.13 million a year ago.

For FY2010, AMMB expects to deliver profits in excess of the top end of its market guidance "provided earlier (RM800 million to RM900 million), barring any major reversals on economic turnaround".

In Mudajaya Group, Lembaga Tabung Haji disposed of 10.55 million shares from Oct 23 to Nov 4, reducing it shareholding to 26.58 million shares or 7.14%.

Meanwhile, businessman Brahmal Vasudevan has emerged as substantial shareholder with 26.4 million shares or 6.28%. He is deemed interest due to his interests in Straits Global Ltd and Celadon Green Ltd which acquired 23.4 million shares. His direct stake is three million shares or 0.81%.

Brahmal, who is involved in a private equity fund, is also a substantial shareholder in Glomac with 16.5 million shares as of June this year.

Widetech's indirect 75% owned Asia Pacific Winning Ltd has entered into a gaming club management and revenue sharing agreement with Savan Vegas Hotel and Casino Co Ltd to jointly operate a gaming club in Savannakhet, Laos.

Widetech said the agreement would enable Widetech to operate the gaming room in their hotel on a revenue sharing with SV. The commencement of the club is in lne with Widetech’s plan to expand their gaming operations overseas.

In Transocean, its chairman and managing director Datuk Mohd Nadzmi Mohd Salleh has launched a takeover of the loss-making logistics company by offering RM1 per share.

Nadzmi's takeover will be via Kumpulan Kenderaan Malaysia Bhd (KKMB). Transocean share price surged 21 sen to 86.5 sen on Friday, Nov 6 before it was suspended at 3.41pm. Trading in Transocean will resume on Monday, Nov 9 at 9am.

In IJM Corp, Kumpulan Wang Persaraan has ceased to be a substantial shareholder after it disposed of 2.77 million shares recently.

Auto stocks may decline after the government has agreed to withdraw the introduction of an end-of-life policy for vehicles following many complaints from the people unhappy the annual comprehensive-inspection requirement for road tax renewal for vehicles aged 15 years or older.