Stocks to watch: Maybank, NSTP, Media Prima, Green Packet

KUALA LUMPUR: Regional markets including Bursa Malaysia are expected to struggle on Friday, Nov 13 after the Dow industrials snapped its six-day winning streak.

However, for local investors fresh news from MEDIA PRIMA BHD [], The New Straits Times Press (M) Bhd and MALAYAN BANKING BHD [] are expected to provide some support.

On Wall Street, the DJIA fell on Thursday, Nov 12 as a drop in oil prices pulled energy stocks lower and a guarded outlook from Wal-Mart fanned worries about consumer spending.

According to Reuters, stocks were also undermined by a U.S. dollar rally, as its safe-haven appeal rose after several policymakers around the world warned the economic recovery was fragile.

Oil futures settled down 3% below US$77 per barrel as data confirmed crude and refined product inventories rose last week.

The Dow Jones industrial average fell 0.91% to 10,197.47. The Standard & Poor's 500 Index dropped 1.03% to 1,087.24. The Nasdaq Composite Index lost 0.83% to 2,149.02.

Stocks to watch are Maybank, Media Prima, NSTP, Green Packet, Tradewinds PLANTATION [] Bhd, Shell Refining Co (Federation of Malaya) Bhd, Eastern & Oriental Bhd (E&O), DIGI.COM BHD [], TIME DOTCOM BHD [] and Salcon.

Maybank posted net profit of RM881.8 million in its first quarter ended Sept 30, 2009, which was RM309.63 million or 54% higher than the RM572.17 million a year ago.

This was in sharp contrast to its fourth quarter ended June 30, 2009 when the bank suffered a net loss of RM1.12 billion after it had made an impairment charge of RM1.617 billion on goodwill arising from its 97.5%-owned PT Bank Internasional Indonesia Tbk's (BII) banking operations and an additional impairment loss of RM111 million for its investment in Pakistan's  MCB Bank.

Meanwhile, Media Prima upped its share swap offer ratio for its proposed takeover of NSTP to six-for-five - or 1.2 Media Prima shares for each NSTP share -- raising the implied value of NSTP to RM2.40 per share from RM2 previously.

NSTP also declared a special tax-exempt dividend of 40 sen per share, of which Media Prima - which owns 43.3% of NSTP - will receive RM37.6 million.

Both companies will resume trading on Friday.

Green Packet's net loss widened further to RM31.85 million in its third quarter ended Sept 30, 2009 from RM10.29 million a year earlier, despite surging revenue, due partly to a continued heavy promotional activities and subscriber acquisition costs.

Tradewinds Plantation's net profit for the third quarter ended Sept 30, 2009 (3QFY09) fell 41.6% year-on-year to RM24.41 million from RM41.78 million a year earlier in tandem with a decline in revenue due to the fall in crude palm oil (CPO) and palm kernel prices.

Shell Refining posted a narrowed net loss to RM35.35 million in the third quarter ended Sept 30, 2009 (3Q09) from a net loss of RM286.54 million a year earlier.

Weak product prices amid slower world demand for petroleum-based products had stifled the company's profit margins.

Eastern & Oriental Bhd (E&O) raised RM236 million from its rights issue of irredeemable convertible secured loan stocks (ICSLS), which saw an over-subscription rate of 2.9 times above the minimum level.

The total number of 362.5 million alloted ICSLS 2009/2019 are expected to be listed on Nov 20, 2009. The ICSLS were issued at 65 sen each, offering a coupon of 8% per annum payable annually and is secured against certain assets of the group.

Khazanah further divested its stake in PLUS. The government investment arm sold of 22.9 million shares or a 0.5% in the highway operator in the last week of October.

DiGi.com Bhd believes its Internet division will act as a driver of growth in 2010 and 2011. It is targeting six to seven million Internet users from both large-screen PCs and laptops using broadband, and small screen hand phones using 3G by year-end.
Currently, DiGi's Internet broadband subscribers for the large-screen segment alone number to 30,000.

Time dotCom posted a net profit of RM11.94 million for its third quarter versus a net loss of RM3.5 million in 3Q08, as an improvement in its operating results offsets one-time voluntary separation scheme (VSS) payments.

Salcon clinched a RM35.79 million sewerage system project in Sepang, Selangor.