KUALA LUMPUR: Investors will have to brace for more downside on Thursday, Oct 29 as key regional markets, including Bursa Malaysia, react to the triple-digit losses of the Dow Jones Industrial Average.US stocks tumbled in a broad sell-off on Wednesday, pushing the broader S&P 500 lower for a fourth straight day, as investors were rattled by weak data on new home sales.
The DJIA fell 119.48 points, or 1.21 percent, to 9,762.69, the Standard & Poor's 500 Index fell 20.78 points, or 1.95 percent, to 1,042.63. The Nasdaq Composite Index slid 56.48 points, or 2.67 percent, to 2,059.61.
The MSCI Asia Pacific Index fell 1.2% to 116.49 on Wednesday.
At Bursa Malaysia, there are more positive news with the revised national automotive policy (NAP) and positive corporate news.
Stocks to watch include Proton, auto stocks, Tradewinds Malaysia and DiGi while other counters that could see some interest are SP SETIA BHD [], WCT BHD [] and MAH SING GROUP BHD [].
Under the NAP, Proton could be given a boost as it sees prospects for a possible tie-up with a strategic partner which manufactures cars with engine capacity of 1.8 litre and above.
The government is looking into the introduction of Vehicle End of Life Policy where vehicles above 15 years will have to undergo mandatory inspection during renewal of road tax. This should stir interest in the car industry and would benefit companies like Tan Chong Motor and UMW.
The NAP did not bring about cheaper cars as the import and excise duty structure remained unchanged. However, the auto plan liberalised the higher-end segments of the car assembly market and improved incentives for component manufacturers.
TRADEWINDS (M) BHD [] has served a notice of unconditional mandatory offer on PADIBERAS NASIONAL BHD [] (Bernas) at RM2.08 per share after securing shareholders' approval for proposed acquisition of a controlling stake of 53.76% in the national rice distributor.
DiGi.Com net profit of RM244.1 million in its third quarter ended Sept 30, up 4% compared to its second quarter.
With Maxis Bhd due to list next month, its rival DIGI.COM BHD [] upped its dividend story by increasing its minimum payout to 80% of net profits from 50% currently.
DiGi declared a special dividend of 75 sen per share which brings its total dividend declared for the year ended Dec 31, 2009 to RM1.24 per share.
SP Setia's foray into China will see the company develop some four billion yuan (RM2 billion) worth of PROPERTIES [] in Zhejiang province's capital city Hangzhou, in a four-phase initiative involving high-rise commercial and residential units.
Expected to be completed within five years, the initiative is through a joint venture with China-based Hangzhou Ju Shen CONSTRUCTION [] Engineering Ltd which is the landowner of the project.
As for WCT, it has teamed up with Iskandar Investment Bhd to jointly develop and co-own 1Medini which is a residential project with a gross development value of RM600 million.
Mah Sing posted a stronger net profit of RM23.5 million in its third quarter, a 42% surge from RM16.5 million a year ago. It proposed a private placement of 63 million new shares of 50 sen each which amounts to about 10% of its paid-up capital.
Written by Yong Min Wei
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