KUALA LUMPUR: The local stock market is expected to have some upward bias but trade could be relatively thin on Monday, Sept 7 as investors are on holiday in several states including Selangor for the Nuzul Al-Quran.
However, external factors which could provide the boost are the stronger close on Wall Street last Friday, Sept 4 and key regional markets including China. The US market will be closed on Sept 7 for a public holiday.
According to Reuters, US stocks closed higher on Friday as investors focused on the bright side of a mixed payrolls report that showed smaller-than-expected job cuts in August, although the unemployment rate hit a 26-year high, according to Reuters.
While the unemployment rate was a little worse than expected, analysts said non-farm payrolls came out better than forecast.
The Dow Jones industrial average rose 1.03% to end at 9,441.27. The Standard & Poor's 500 Index gained 1.31% to 1,016.40. The Nasdaq Composite Index added 1.79%, to close at 2,018.78.

Stocks which could see trading interest include Goh Ban Huat (GBH), Vastalux Energy, Genting and Magna Prima.

The board of GBH recommended minority shareholders accept low-profile tycoon Tan Sri Robert Tan Hua Choon's revised offer at RM1.50 per share after Tan strengthened his grip on the company with a 54.07% stake.

On Aug 28, Lembaga Tabung Angkatan Tentera ceased to be a shareholder after it disposed of its entire 11.23 million shares at RM1.50 each to Tan.

In Vastalux, there are concerns after a major shareholder and managing director Nor Sabri Hamzah reduced his stake in the supportive service provider to the oil and gas sector to 19.03% on Aug 25 from 21.46%.

Vastalux reported a loss in the second quarter of RM1.65 million from net profit of RM6.28 million a year ago while its share price has fallen to a low of 41.5 sen late last month from its high of 65.5 sen. It was listed just a year ago.

Genting could continue to see some heavy trading interest but there could also be some mild profit taking after two days of rally after it was recently upgraded and speculation it could open earlier than the 2010 deadline.

Macquarie Research had on Sept 2 upped the target price from RM7.50 to RM9.50. It also raised Genting's earnings estimates for FY10 by 20%.

Magna Prima is acquiring two pieces of land, totalling 28,148 sq metres in Petaling Garden from Petaling Garden Sdn Bhd for RM48.48 million. This is at RM160 per sq ft.

The acquisition is to expand its landbank as it prepares to launch new projects with quick turnaround time.

Watta Holding will resume trading on Monday, Sept 7 after Bursa Malaysia Securities uplifted the suspension.


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