KUALA LUMMPUR: JF Apex Research expects Sona Petroleum, Oriental Holdings, Axiata, Reach Energy
and water pipe makers to see trading action on Thursday after their corporate news.
Sona Petroleum is ready to undergo the liquidation process, once the deadline to complete its qualifying acquisition expires on July 31.
Oriental Holdings’ unit Oriental Rubber & Palm Oil Sdn Bhd and two minority shareholders, will collectively dispose of their 100% equity in Oriental Assemblers Sdn Bhd for RM32.5mil to Berjaya Assets Bhd.
Axiata, the group announced that the High Court had allowed Rego’s claim of RM265m with interest of 5% from May 13, 2013 until full settlement and dismissed Tan Sri Tajudin Ramli’s counterclaim with costs of RM100,000.00 after full trial of the above matter.
JF Apex Research said following the outcome of the lawsuit, Axiata would have a one-off gain of RM264.5 million.
“We are keeping our forecasts intact pending further details from the management and the possibility of an appeal. Maintain Buy on Axiata with our target price of RM7.04,” it said.
As for Reach Energy, it is one step closer to completing its proposed acquisition of a 60% stake in Palaeontol BV for US$154.9mil, as its vendor has obtained approval from its shareholders for the disposal.
Water pipe manufacturers such as Engtex, JAK Resources, Hiap Teck and YLI could see trading interest as the Pengurusan Air Selangor Sdn Bhd (Air Selangor) may face delays in obtaining its operating licence and hence affecting its capex works due to uncertainties relating to the acquisition of Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH).
Meanwhile, US markets ended lower overnight after being weighed by energy counters. Earlier, European stocks closed higher before the Brexit vote.
On Tuesday, the FBM KLCI gained 3.46 points to 1,637.69.
“Following the mixed performance in the US and Europe, the FBM KLCI could trend sideways above the support of 1,610 and take a breather from the recent rebound,” said the research house.
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