Stocks to watch: Lityan, Sime, Time, Jetson

KUALA LUMPUR: Market sentiment is expected to continue to be lacklustre on Wednesday, Nov 4, except for selected stocks following the uninspiring close on Wall Street.

At Bursa Malaysia, stocks which may see trading interest include Lityan Holdings, Sime Darby, Kumpulan Jetson and Time Engineering. Other companies are Mah Sing, Supermax, Scomi Marine and Paramount.

On Wall Street, the S&P 500 and Nasdaq rose slightly on Tuesday news of a major railroad acquisition helped sentiment, but the Dow edged lower on caution before a Federal Reserve statement on interest rates and the economy.

The Dow Jones industrial average slipped 17.53 points, or 0.18 percent, to end at 9,771.91. But the Standard & Poor's 500 Index added 2.53 points, or 0.24 percent, to finish at 1,045.41. The Nasdaq Composite Index advanced 8.12 points, or 0.40 percent, to close at 2,057.32.

Meanwhile, EPFR reported global equity markets began to run out of steam during the fourth week of October as the euphoria generated by the 3Q09 earnings season in the US and elsewhere was trumped by mixed macroeconomic data.

"Flows into EPFR Global-tracked emerging markets equity funds, which had averaged US$4.4 billion the previous two weeks, slid to US$2.2 billion while US, Japan and Europe Equity Funds all posted outflows," it said.

At Bursa Malaysia, Lityan fell for this first time in three days, down 25 sen to RM2.45 in late trade before it was voluntarily suspended on Tuesday after replying to a Bursa Securities query over the sharp price and volume increase.

It resumes trading Wednesday at 9am. Today is also T+3, which settlement date for the shares bought on Friday.

While there could be profit taking after the price surge, the fundamentals of the company remain strong with Lembaga Tabung Haji as a major shareholder with a 65% stake, underpinned by its solid book order.

Sime Darby targets to complete the infrastructure for its groundwater project in Perak by end 2010 and start supplying 500 million litres a day to Selangor. Foreign companies are reported to be keen in the project. Total investment is expected to be RM1.3 billion.

Time Engineering has sought the approval of Bursa Securities for the lifting of its Practice Note 17 (PN17) status of the Main Market Listing Requirements.

The company said it had fully addressed its financial and operational viability following the completion of its debt and capital restructuring.

Jetson has proposed to undertake a private placement of 10% of its paid-up or 5.279 million shares to raise gross proceeds of up to RM11.1 million, assuming the issue price of the placement shares is fixed at RM2.10 per placement share

MAH SING GROUP BHD []'s proposed en bloc sale of The Icon@Mont Kiara commercial property project for RM285.4 million hit a snag, as the supposed purchaser failed to meet the conditions stipulated in the sale and purchase agreement (SPA) signed two years ago.

Lembaga Tabung Haji recently took profit in its investment in Supermax, whose shares rallied in recent months on surging demand for latex gloves following the outbreak of the H1N1 flu.

The pilgrimage fund had sold 6.07 million shares from Oct 9 to Oct 27 when the shares were on the upward trend. The share price was trading between RM2.81 on Oct 9 to RM3.69 on Oct 27.

Paramount Corp is purchasing a 21.7-acre piece of land in Shah Alam, Selangor, from The Titular Superior of the Brothers of Saint Gabriel for RM62.39 million or RM66 per sq ft.

Land and General has teamed up with Mayland Parkview Sdn Bhd, a company linked to its major shareholder, to develop a piece of land in Ampang which the JV will acquire from a firm controlled by former minister Tan Sri Abdul Kadir Sheikh Fadzir.

Scomi Marine posted a 25% rise in net profit to RM25.52 million in its third quarter (3Q) ended Sept 30, 2009 from RM20.4 million a year earlier, mainly due to improved gross profit margin.