Trading ideas: MBSB, KESM, ML Global, Kimlun, Zecon

Malaysia Building Society Bhd proposed a cash call to raise up to RM2bil.

KUALA LUMPUR: JF Apex Research expects Malaysia Building Society Bhd (MBSB), KESM, ML Global, Kimlun and Zecon to be among the stocks to watch on Friday after their corporate news.

MBSB has proposed a cash call which involves a renounceable two-call rights issue of new shares to its entitled shareholders, to raise up to RM2bil.

As for burn-in tester KESM, its 2QFY16 net profit more than triple on the back of higher revenue.

JF Apex Research said ML Global will be uplifted from being classified as a Practice Note 17 (PN17) company.

The joint venture of Kimlun and Zecon won a RM1.46bil contract to build and upgrade part of the Pan Borneo Highway in Sarawak.

Overnight on Wall Street, US markets closed flat amid retreat in crude oil prices and concerns about the effectiveness of European Central Bank’s (ECB) monetary policy. 

European bourses ended sharply lower following ECB’s comments and a dip in commodity prices. ECB chief Mario Draghi suggested there were limits to negative rate policy.

However, markets concern that it may run out of easing ammunition should the economy deteriorates.

At Bursa Malaysia, the FBM KLCI gained 4.56 points or 0.27% to end at 1,690.91. 

“The local bourse is expected to succumb to profit taking with our immediate support level at 1,675 taking its cue from the uninspiring performance posted by the overseas markets overnight,” said JF Apex Research.