Trading ideas: Mudajaya, Palette, Berjaya Corp, MPay, WMG

KUALA LUMPUR: JF Apex Research expects Mudajaya, Palette, Berjaya Corp, MPay, WMG and Texchem Resources to be among the stocks which could also see trading interest on Tuesday after their corporate news.

Also attracting investor interest are Lotte Chemical Titan which fell sharply in active trade after posting weaker earnings in the second quarter.

Veteran banker Tan Sri Teh Hong Piow, who has helmed the Public Bank Bhd group over the past 51 years, is retiring as the non-executive chairman with effect from Jan 1, 2019.

JF Apex Research said Mudajaya has won two contracts valued at RM151.38mil from Petroliam Nasional to undertake the procurement, construction and commissioning works for the utilities, interconnecting and offsite facilities of the refinery and petrochemical integrated development (Rapid) project in Pengerang, Johor.

Palette Multimedia aborted plans to diversify into the traditional Chinese medicine industry after it decided not to proceed to buy a 51% stake in Genopharma Sdn Bhd, as the latter’s current financial performance is below expectations. 

Separately, Palette said it inked additional contracts with values exceeding RM18mil with associate companies of Russian telecommunications giant RKSS Group for its digital cloud infrastructure and video/audio conference communication equipment; 

Berjaya Corp cancelled its proposed joint venture to operate a new pharmacy chain with Australia-based CW Retail Asia Pty Ltd.

United Plantations's 2QFY17 net profit grew 51.7% on-year, thanks to higher production, higher crude palm oil and palm kernel prices, and lower costs of production;

 MPay has been appointed by the Malaysia Economic Development Council (Mapem) as a partner and service provider for its Mapem/MPay Prepaid MasterCard programme for foreigners in Malaysia; 

WMG is looking to launch RM1.3 billion of new projects post-listing via a reverse take-over of Tekala Corporation Berhad.  

Texchem Resources’s 2QFY17 net loss widened to RM6.11mil from RM3.52mil a year ago, due to lower contribution in its industrial and restaurant divisions; 

Overnight, US markets ended mixed with the Dow extending its record high following a strong performance in corporate earnings. 
Earlier, European stocks were also mixed as gains in basic material and banking counters were offset by losses in carmakers.
 
At Bursa, the FBM KLCI lost 7.05 points to end at 1,760 following a last minute plunge.

“Following the flat performance in the US and Europe, the KLCI is expected to remain lacklustre below the resistance of 1,770 but above the support of 1,750,” it said.