Avenue Assets: Pantai Holdings Bhd's announcement that it is selling its entire 16.39% stake in Avenue Assets appears to have doused investors' enthusiasm for the stock. A total of 134.9 million shares changed hands with the price battered down by 13.5 sen to 74. Interest in Avenue, however, is expected to remain high in view of Minister of Finance Inc's 29.8% stake. Avenue surprised its competitors when it clinched one of the year's top jobs as a main adviser for Federal Land Development Authority Bhd's listing. Many believe Avenue would use its universal broker status to cement its position in the market and the Felda deal is just the start.
Stock watch on Avenue Assets FBO: FBO has performed relatively poorly since it assumed the listed status of Austral Amalgamated Tin Bhd. But a recent deal with the vendors of Eastern Biscuits Factory Sdn Bhd has given investors a new reason to get into the stock. The deal revised upward the pre-profit guarantee by Eastern Biscuits to at least RM9.2mil for the year ending Dec 31 and RM14.78mil and RM18.3mil for years 2004 and 2005 respectively. At the same time, FBO is reported to be relaunching its 700-acre Danau Kota project, which it expects will contribute to earnings by next year.
Stock watch on FBO MCM Tech: The market was abuzz after it was reported that this venture capital company was teaming up with LG Electronic group of South Korea to bid for the electronic court project. This is a departure from its usual activities of financing start-up companies. Interestingly, many institutional investors are believed to be holding the shares, which could indicate more interesting development is in store at the company. A total of 68.2 million shares changed hands during the week, which saw the share price ease 5 sen to 46.5 sen.
Stock watch on MCM Tech DXN: This direct-selling company made a sizzling debut on the KLSE main board, opening trade at a premium of 67 sen. By the end of the week, DXN stood at 94.5 sen, 31.5 sen above its offered price with a total of 51.14 million shares traded. The listing was a public relations success for the company, which is involved in the manufacture of health food supplement products made from lingzhi mushroom. DXN has said it would explore opportunities in North America, which could potentially be a large market for its products.
Stock watch on DXN MK Land: Several new developments boosted market interest in MK Land this week. After placing out 117.44 million shares, the company announced it had met the minimum 25% public spread. It also projected sales of RM500mil next year from its premier property project, Damansara Perdana. MK land's main shareholders, Tan Sri Mohamed Kamal Abu Bakar and Datuk Kasi Palaniapan, have also proposed to buy 50% stake in Setia Haruman Sdn Bhd, the developer of CyberJaya. The counter closed 13 sen higher at RM1.96, with a volume of 47.4 million shares for the week.
Stock watch on MK Land