Stocks to watch: BTM, JAKS, KNM, water stocks, Proton

KUALA LUMPUR: Key Asian markets are expected to start off on a firmer note, encouraged by the gains on Wall Street as worries about the Dubai debt situation and the Vietnamese dong devaluation dissipate.

On Wall Street, the Dow Jones industrial average climbed to its highest close in 14 months on Tuesday, Dec 1 as a weak dollar boosted natural resource companies' shares and economic data reinforced hopes for a sustainable recovery.

The DJIA jumped 126.74 points, or 1.23 percent, to end at 10,471.58. The Standard & Poor's 500 Index rose 13.23 points, or 1.21 percent, to 1,108.86. The Nasdaq Composite Index advanced 31.21 points, or 1.46 percent, to close at 2,175.81.

At Bursa Malaysia, stocks to watch include BTM Resources, JPK Holdings, KNM, water-related counters and Proton Holdings.

BTM resumes trading on Wednesday after the implementation of its proposed rights issue. The reference price for the BTM ordinary share is 14 sen and the trading limit will be 500%. The 500% limit is only applicable for the first day of requotation.

JPK Holdings will be suspended from 9am on Tuesday, Dec 8 until further notice. It failed to submit its quarterly report for financial period ended Sept 30, 2009 to Bursa Securities for public release within the stipulated timeframe.

Water players, in particular Puncak Niaga Bhd and GAMUDA BHD [], should see some trading interest after Selangor's KUMPULAN PERANGSANG SELANGOR [] Bhd said its offer to buy the assets of the water suppliers in the state, Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) and Syarikat Bekalan Air Selangor Sdn Bhd’s (Syabas) has lapsed without agreement.

However, this should not come as a surprise due to the difficulties faced by the Selangor government in acquiring these assets.

Proton plans to export its Exora model to Australia and the Middle East next year, launch its first model in India in 2011 and export 50% of its total production within three years.

According to Proton managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir, Proton expected to export 26,000 cars or about 24% of its production by the end of its current financial year in March 2010 and hoped to raise it to 40,000 units in FY2011.

In KNM Group, the company said its memorandum of agreement with Societe Des Hydrocarbures Du Tchad S.A. of Chad has lapsed.

 Written by Tony Goh