Malaysia stock market and companies daily report January 10, 2011

Malaysia stock market and companies daily report January 10, 2011 ; Boustead Plans Army Base Land Purchase For RM8b Project Boustead Holdings is in talks with the government to buy the 98 hectare Batu Cantoment army base at Jalan Ipoh for the development of commercial and residential properties worth more than RM8b. Boustead’s deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin is hopeful that it will be involved in the land development and said that the company may build medium to high-end houses, commercial and residential towers, shophouses, small office/home office and a mall.

Significance: The government has been selling some of its prized land bank around Kuala Lumpur and the Klang Valley for redevelopment. Should the deal go through, Boustead will benefit from the development opportunities on the strategically located prime area, which is also likely to attract foreign investments.

Sino Hua-An Unlikely To Be Hit By Costlier Coal
Sino Hua-An International, a metallurgical coke manufacturer, is not likely to be significantly affected by the rising international coal prices caused by the floods in Australia’s coal-rich state of Queensland. The company’s metallurgical coke plant in Shandong province purchases and uses most of its coking coal from mines in Shandong, Henan and Shanxi provinces. Sino Hua-An also buys cheaper coking coal in bulk for the winter season. The company’s current coking coal inventory is at 170,000 tonnes, more than triple its usual level at 50,000 tonnes. This inventory level is enough for over a month’s use. Coal prices for delivery in Mar-11 have risen to some US$130 a tonne from around US$100 a tonne at the beginning of Dec-10.

Significance: Coking coal supplies from overseas are likely to be severely restricted, which will in turn push up the selling prices of Sino Hua-An’s by-products further in the near term. The domestic coal price will be pressured to increase as local coal producers are unwilling to sign new coal contracts despite China government’s effort aimed at stabilising coal prices.


Ramunia Eyes Borcos Shipping
Ramunia Holdings, which is without a core business, is in talks to acquire Syarikat Borcos Shipping, according to sources familiar with the matter. Meanwhile, Ramunia has two months to come up with a regularisation plan, and submit it to the authorities. In Apr-10, the company sold its main assets, its fabrication yard and machinery located in Teluk Ramunia, Johor to Sime Darby for RM515m, which left it without a core business, but with sufficient funds to settle its debts and acquire a new core business.

Significance: Ramunia has recently seen its bottom line returning to the black and will be able to attain a core business through the acquisition of Borcos Shipping. The latter has its mainstay in the provision of offshore supply services for the oil and gas sector and barges. For the latest updates PRESS CTR + D or visit Stock Market news Today

Related Post: