Trade Shares or Stocks in Bursa Malaysia|How to start Trading | Trade Stocks in Bursa Malaysia | How to Open Trading Account | How to Open CDS Account | What is Collateralised Trading | Discretionary Financing | Share Margin Financing | CDS Share Transfer | Securities Borrowing and Lending (SBL) | Regulated Short Selling (RSS) | Brokerage | Internet Trading Brokerage Discount | Cash Upfront Brokerage Discount | Clearing Fees | Contract Stamp Duties | Bursa Malaysia | Composite Index | Bursa News | Listed Companies News | Market News | Market Outlook

Encorp Bhd announced today a proposed renounceable rights issue of up to RM111.75 million nominal value of five-year six per cent redeemable convertible secured loan stocks (RCSLS) at 100 per cent of its nominal value together with up to 55.87 million free detachable warrants.

This is on the basis of two RM1 nominal value of RCSLS together with one warrant for every four existing shares of RM1 each in Encorp, the company said in a filing to Bursa Malaysia.

Encorp also announced a proposed placement of up to RM22.35 million nominal value of RCSLS at 100 per cent its nominal value together with up to 11.175 million free detachable warrants to identified investors.

It said proceeds amounting RM134.105 million arising from the rights issue would be used for capital, project development and construction expenditures, finance working capital requirements and expenses related to the proposals.

Buoyed by the stronger signs of economic improvement as shown in the last quarter of 2009, Encorp is looking at opportunities to grow and enhance its earnings.

The business strategy for its property division is to replenish and expand its landbanks in strategic locations and for the construction division is to increase its order books.

Currently, the property division is in the midst of negotiating with various parties to increase the development of landbanks while the construction division has submitted a few proposals to certain parties to bid for construction jobs.

Encorp also said that the proposed rights issue and placement were expected to be completed by third quarter of the financial year ending Dec 31, 2010, and not expected to have any material effect on the company’s earnings for the financial year.

Related Posts:

• No Related Posts

Investors should buy the ringgit against South Korea’s won and Japan’s yen as Malaysia’s central bank may increase its policy rate as many as two more times in 2010, the Royal Bank of Scotland Group plc said.

Bank Negara Malaysia will continue reining in monetary stimulus after last week’s rate increase, while government pressure will mean that the Korean and the Japanese central banks won’t increase borrowing costs anytime soon, RBS, the fourth-largest currency trader, wrote in a research note published on Tuesday.

Malaysia’s central bank will next review its policy on May 13.

“Bank Negara could do a few more rate hikes,” RBS strategist Chia Woon Khien said in an interview in Singapore yesterday. “The question is whether they want to go straight to neutral level or stay a little dovish along the way.”

Malaysia’s central bank raised its benchmark overnight rate by 25 basis points to 2.25 per cent on March 4. The RBS report said there is “scope for at least one, if not two more, 25-basis point hikes” in the coming year. Prime Minister Datuk Seri Najib Razak said last week that Southeast Asia’s third-largest economy may expand 6 per cent this year, twice the pace of the official forecast, on a rebound in exports.

The ringgit has risen 2.6 per cent this year against the dollar, the best performer among Asia’s most active currencies excluding the yen. It climbed 0.6 per cent to 3.3230 at 12.10pm in Kuala Lumpur, the strongest level since August 2008.

The bank recommended entering a three-month forward contract to sell the won at 339.36 per ringgit, targeting the spot rate to reach 355 when the bet expires on June 9. RBS also suggested a similar forward bet at 26.74 yen per ringgit, predicting the spot rate at 28 upon the contract’s maturity.

Related Posts:

• No Related Posts

Strong gains in plantation stocks amid the anticipation of higher crude palm oil prices helped to push the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) to a new two-year high.

On Monday, the CI hit 1,324.22, up 24.44 points from last Friday, and the highest since March 2008.

The FBM KLCI rallied to its new high of 1,328.22 today as sentiment was further supported by overnight gains on Wall Street.

Major contributors to today’s gains were Sime Darby, KL Kepong and IOI Corp.

Jupiter Securities Sdn Bhd’s head of research, Pong Teng Siew said the plantation index weightage was about 20 per cent of the FBM KLCI.

“Plantation stocks are likely to rise further as the outlook for the palm oil industry remains strong,” said Pong.

Crude palm oil (CPO) futures prices are trading above RM2,500 per tonne currently.

During the two-day Palm and Lauric Oil Price Outlook conference held recently, an analyst had said CPO futures were likely to trade between RM2,800 per and RM3,200 per tonne in the second half of this year and first-half of 2011.

From March to July, the commodity is expected to fetch between RM2,600 and RM2,800 per tonne as ample stocks would continue to keep prices in check, he said.

During this period, South America is also expected to off-load large soybean oil supplies into the market, he said.

He said the El Nino hot weather will also be a key driver for stronger CPO prices as it is expected to see a reduced production.

Meanwhile, another analyst said the local stock market would continue to do well with the global economy returning to recovery mode, and this will further boost the level of investor confidence.

Related Posts:

• FBMKLCI highest in 2years
• FBMKLCI – Nestle in and Parkson out
• FBMKLCI replaces KLCI