Trading ideas: Capital A, AAX, Solarvest, TWL, SCB, Berjaya Food

KUALA LUMPUR: Stocks to watch on Friday include Capital A Bhd, AirAsia X Bhd (AAX), Solarvest Holdings Bhd, TWL Holdings Bhd, Sarawak Cable Bhd (SCB) and Berjaya Food Bhd.

The negotiation period for Capital A’s sale of AirAsia’s aviation business to AAX has been extended for the second time until April 30, 2024.

Solarvest aims to raise RM56.71mil through a private placement, representing 6% of its enlarged share base, to finance solar power projects.

Low Swee Foong has ceased to be a substantial shareholder of TWL after selling 76.83 million shares in the property development and construction firm.

SCB and its subsidiary, Universal Cable (Sarawak) Sdn Bhd, are both facing lawsuits from two banks, Hong Leong Bank Bhd and Hong Leong Bank Islamic Bhd, over a total owed sum of RM95.53mil.

Tycoon Tan Sri Vincent Tan is reportedly exploring the possibility of privatising Berjaya Food, which owns Starbucks Corp’s Malaysian operations.

Commenting on the market, Apex Securities anticipated the global markets to remain steady as investors await the first-quarter banking earnings season to kick off today.

“Similarly, we expect the local bourse to consolidate above the 1,500 psychological level in the absence of a fresh catalyst, while investors are still reeling from the mid-week festive break. The stronger-than-expected US inflation data diminishes the prospects of interest rate cuts hence we expect a pullback to take place as investors lock in their recent gains.

“The lower liners may also brace for some weakness ahead after enjoying a decent run. Key economic focus will be directed towards US Michigan Consumer Sentiment as well as UK industrial and manufacturing production decisions to be released today. With the ongoing volatility, we advocate investors to be defensive, focusing on gold-related stock and utilities sector,” Apex said.

Overnight, the Dow Jones Industrial Average fell 2.43 points, or 0.01%, to 38,459.08, the S&P 500 gained 38.42 points, or 0.74%, to 5,199.06 and the Nasdaq Composite added 271.84 points, or 1.68%, to 16,442.20.