Stocks to watch: Ramunia. Sime Darby, DSC, Vastalux, SILK

KUALA LUMPUR: Key Asian markets will see volatile trade with more downside pressure on Wednesday, Dec 9 after US markets closed lower overnight on rising investors' fears about obstacles still facing the global economy.

Global markets fell as worries over Dubai's debt problems hit bank shares and the dollar rose against the euro after Fitch Ratings agency downgraded Greece's credit, according to Reuters.

The Dow Jones industrial average closed down 1% at 10,285.97. The Standard & Poor's 500 Index fell 1.03% at 1,091.94, and the Nasdaq Composite Index weakened 0.76% at 2,172.99.

Stocks to watch today include SIME DARBY BHD [], Ramunia Bhd, SILK Holdings Bhd and DSC Solutions Bhd, which will make its debut on the ACE Market. Also on the investors' radar screen would be VASTALUX ENERGY BHD [].

Oil and gas companies, especially those listed companies related to the Petronas group could attract some attention.

Unlisted Petroliam Nasional Bhd posted a 47.5% decline in net profit to RM20.3 billion in the first half of its fiscal year to Sept 30, 2009 (1HFY10) from RM38.65 billion a year earlier due to an overall drop in product prices and lower sales volume.

Sime Darby's offer to acquire Ramunia's Teluk Ramunia fabrication yard and assets for RM530 million is a premium of 21.92% over an independent valuation of RM434.69 million in the open market.

As for DSC, its offer price was 50 sen per 10 sen share. Subsequently, it undertook a one-for-one bonus issue after the public issue and the reference price is likely to be 25 sen.

Vastalux vice chairman and executive director Mohamad Nor Abdul Rashid has continued to reduce his stake in the company. Since Dec 2 to 3, he has sold 26 million shares in the company which was listed in September 2008.

He disposed of 13 million shares or 6.3% at 16 sen each on Dec 2. The share price closed at 23 sen that day.

He sold another 13 million shares for 16.5 sen each on Dec 3, reducing his total shareholding to 14% or 28.94 million shares.

SILK Holdings Bhd's 1Q net profit rose 60% to RM3.51 million from RM2.19 million a year ago, underpinned by contributions from its O&G division.

Revenue increased 54.3% to RM48.81 million from RM31.64 million while earnings per share improved to 1.61 sen from 1.22 sen. SILK said the higher revenue and earnings was mainly due to the commencement of three new vessels subsequent to that period.

Harn Len Corp Bhd plans to buy a PLANTATION [] in Sarawak for RM14 million. It proposed to acquire the entire stake in Gemilang Bumimas Sdn Bhd (GBSB) for RM13.99 million cash, paving the way for Harn Len to expand its oil palm plantations' landbank in Sarawak.

DELLOYD VENTURES BHD []'s subsidiary Delloyd Electronics (M) Sdn Bhd is teaming up with Germany's Brose International GmbH to manufacture and supply window regulators to the Ford group in Thailand and Argentina.

Delloyd Electronics and Brose had inked a deal to set up the JV to produce window regulators for the Ford T6 and C 346 models. The plant would be in Rayong, Thailand.

SUNWAY HOLDINGS BHD [] is teaming up with Hoi Hup Realty Pte Ltd to develop a 19,264.70-sq metre parcel of land in Jalan Senang, Singapore.

Sunway Developments Pte Ltd had subscribed for a 30% stake comprising 300,000 shares in Hoi Hup Sunway Property Pte Ltd for S$300,000 (RM730,778). The remaining 70% stake in HHSP is held by Hoi Hup Realty.

Broking and property concern, TA ENTERPRISE BHD [] (TAE), recorded a 54% drop in net profit to RM17.59 million in its third quarter ended Oct 31, 2009 (3QFY10) from RM38.23 million a year earlier, due to a fall in property development revenue.

Although brokerage income and gain on disposal of investments were higher in 3QFY10, TAE group recorded a drop in revenue from property development as compared to previous year's corresponding period.

Written by Loong Tse Min