Stocks to watch: Ho Hup, Green Packet, MAS, Petra Perdana

KUALA LUMPUR: Stocks on Bursa Malaysia are expected to start off on a firmer note on Friday, Feb 12 after a pledge by European leaders to help debt-stricken Greece encouraged investors back in to equity markets. Wall Street gained as much as 1.4 percent, also supported by a dip in weekly jobless claim, with the Nasdaq leading the gains.

The Dow Jones industrial average rose 105.81 points, or 1.05 percent, to 10,144.19. The Standard & Poor's 500 Index gained 10.34 points, or 0.97 percent, to 1,078.47. The Nasdaq Composite Index added 29.54 points, or 1.38 percent, at 2,177.41.

Stocks to watch on Friday are Ho Hup CONSTRUCTION [] Company Bhd, GREEN PACKET BHD [], MALAYSIAN AIRLINE SYSTEM BHD [] and PETRA PERDANA BHD []. However, trading is expected to be light in view of the holidays ahead next week.

Meanwhile, the fight for control of Ho Hup has resumed following a week-long lull.

Ho Hup's second-largest shareholder, Datuk Low Tuck Choy who holds 23.11 million shares representing a 22.66% stake in the company, has called for another EGM to remove the present board of directors after the first one was called off owing to a technicality.

The first EGM, which was scheduled for Feb 4, was cancelled after the company's largest shareholder, Extreme System Sdn Bhd, obtained a restraining order from the High Court here.

Green Packet Bhd posted net loss of RM94.54 million in its fourth quarter ended Dec 31, 2009, compared with RM37.22 million in losses a year ago as it made additional provisions for impairment of long term investments, investments in associates and inventories of about RM26 million.

MAS's share price and the entitlement to the rights shares, which fell sharply on Thursday, should stabilise today. Analysts said the heavy trading in the entitlement to the rights shares was "churned" by traders and viewed the selling as overdone.

MAS chief financial officer Mohd Azha Abdul Jalil tells the Edge FinancialDaily that MAS's rights issue has the support of Khazanah Nasional and Penerbangan Malaysia Berhad who have undertaken to subscribe for their entitlements which amounts to 69.33% of the rights issue.

"Further, Khazanah has undertaken to apply for excess rights amounting to 1.96% of the rights issue. The remaining open portion of the rights issue has been underwritten by Maybank Investment Bank Bhd, CIMB Investment Bank Bhd and RHB Investment Bank Bhd which has provided MAS with a high degree of certainty in this equity fund raising exercise," he said.

In Petra Perdana Bhd, its new board of directors has yet to decide on whether to retain or dispose of its remaining 29.59% stake in PETRA ENERGY BHD [], said its executive director Shamsul Saad.

EON CAPITAL BHD [] (EONCap), in a strong capital position, is in no hurry to find a merger partner or be taken over, said EON Bank Bhd group CEO Michael Lor.