Stocks to watch: Media Prima, NSTP, auto, Kencana

Written by Joseph Chin 
Thursday, 17 September 2009 07:42 

KUALA LUMPUR: Wall Street gave Asian investors another reason to pick up equities on Sept 17 after US stocks rose to fresh 2009 highs in a broad-based rally following economic data that suggested a stronger-than-anticipated global recovery.

US industrial output advanced for a second consecutive month in August. The Dow Jones industrial average advanced 1.12% to 9,791.71. The broader S&P 500 Index was up 1.53% at 1,068.76. The Nasdaq Composite Index was up 1.45% at 2,133.15.

Stocks to watch include The New Straits Times Press (Malaysia) Bhd (NSTP) and MEDIA PRIMA BHD [], auto companies, Kencana, Kumpulan Jetson and Mah Sing.

Nomura Securities has upgraded Malaysian banks' earnings, underpinned by an economic recovery and lower-than-expected credit costs and non-performing loans (NPLs).

The major shareholders of both NSTP and Media Prima Bhd have agreed to the privatisation of the former, sources said. The deal would see NSTP getting one Media Prima share for every NSTP share held, in addition with warrants and loan stocks. For more read The Edge FinancialDaily today.

Auto stocks, including Proton, rallied on expectations the government would provide more incentives for the local car makers under the National Automotive Policy.

KENCANA PETROLEUM BHD [] subsidiary Kencana HL Sdn Bhd secured a RM90 million three-year service contract from an oil company for the provision of offshore CONSTRUCTION [] services to the client's production platforms located offshore Peninsular Malaysia.

Kumpulan Jetson's share price fell sharply yesterday after BURSA MALAYSIA BHD [] issued an unusual market activity (UMA) query to the company.

The stock fell 13 sen or almost 7% to its intra-day low of RM1.80 but soon after recovered slightly to close at RM1.84, down nine sen or 4.66% from the previous day’s close. Over 4.6 million shares were traded during the day between RM1.80 and RM2.09.

MAH SING GROUP BHD [] is acquiring two parcels of prime freehold industrial land in Bukit Jelutong, Shah Alam, measuring about 52,245 sq metres (12.91 acres) from Flextronics TECHNOLOGY [] (Shah Alam) Sdn Bhd at RM37.79 per sq ft for a total of RM21.25 million cash.