MRCB: The Rights Issue

Shareholders and those intending to buy into the parent share to subscribe for the 1:2 rights issue should read the following short announcement.

1) MRCB shares will be traded and quoted [ "Ex - Rights Issue" ]
as from : [ 28 January 2010 ]

2) The last date of lodgement : [ 2 February 2010 ]

3) Retention Money : Where securities are not delivered in time for registration by the seller, then the brokers concerned :-

a) Selling Broker to deduct [ 1/3 ] , of the Selling Price against the Selling Client.

b) Buying Broker to deduct [ 10% ] of the Purchase Price against the Buying Client.

c) Between Broker and Broker, the deduction of [ 1/3 ] of the Transacted Price is applicable.

RENOUNCEABLE RIGHTS ISSUE OF UP TO 482,271,409 NEW ORDINARY SHARES OF RM1.00 EACH IN MALAYSIAN RESOURCES CORPORATION BERHAD ("MRCB") ("RIGHTS SHARES") ON THE BASIS OF ONE (1) RIGHTS SHARE FOR EVERY TWO (2) EXISTING ORDINARY SHARES OF RM1.00 EACH IN MRCB HELD ON 2 FEBRUARY 2010 AT 5.00 P.M. AT AN ISSUE PRICE OF RM1.12 FOR EACH RIGHTS SHARE ("RIGHTS ISSUE").

Kindly be advised of the following:

1) The Rights commence of trading: 3 February 2010

2) Despatch Date of the Prospectus/Provisional Allotment Letter of Offer:
4 February 2010

3) The last day and time for Acceptance, Renunciation and Payment:
19 February 2010 @ 5:00pm (This is an important date)

4) The Rights cease quotation : 10 February 2010

You may trade your rights allotment letter at the going price.

US: Disappointing December Housing Numbers

The data tells. It told of falling sales of newly built US single-family homes in December,stoking fears that the government-led housing recovery might be losing some steam.

Let us read the Reuters report.

"The Commerce Department said sales fell 7.6 per cent to a 342,000 unit annual rate from an upwardly revised 370,000 units in November. It was the second straight month that new home sales declined.

Analysts polled by Reuters had expected new home sales to increase to a 370,000 unit annual pace from November's previously reported 355,000 units.

New home sales for the whole of 2009 fell 22.9 per cent to a record low 374,000 units, the department said.

The housing market recovery is showing some signs of fatigue after a surge in sales as first-time buyers rushed to take advantage of a popular tax credit, which had been scheduled to expire in November.

It has since been expanded and extended until June this year and while analysts expect home sales to pick up as a result, they reckon the pace will not be as strong as witnessed with the initial tax credit.

The housing market was the main catalyst of the most painful downturn in 70 years and renewed weakness could hobble the economic recovery.

Despite the slump in sales there were a few bright spots in Wednesday's report. The median sale price for a new home rose 5.2 per cent last month from November to $221,300, the highest in seven months and the biggest rise since April 2009. Compared to December 2008, the median sale price fell 3.6 per cent.

The number of new homes on the market last month dropped 1.7 per cent to 231,000 units, the lowest level since April 1971.

However, December's weak sales pace left the supply of homes available for sale at 8.1 months' worth, the highest since June 2009, from 7.6 months in November."

Seems like the USA and the world need more longer doses of painkillers to become economically well again.