Written by The Edge Financial Daily
Thursday, 13 August 2009 07:35
KUALA LUMPUR: Asian markets could regain their momentum on Aug 13 as investors heave a sigh of relief that the US economy was showing signs of leveling out and also the firmer overnight close on Wall Street.
The Dow Jones industrial average gained 1.30% to 9,361.61. The Standard & Poor's 500 Index rose 1.15%to 1,005.81. The Nasdaq Composite Index added 1.47% to 1,998.72.
The US Fed Reserve made its clearest statement to date that it sees the recession nearing an end and that shattered financial markets are healing.
Regional markets tumbled on Aug 12, triggered by the 4.66% fall on Shanghai’s Composite Index, after the Chinese government described the problem of overcapacity in China’s industry as “pronounced” and that some sectors and companies still faced operational difficulties.
At Bursa Malaysia, the upbeat corporate earnings from BCHB, AirAsia and Scomi Engineering could provide the positive sentiment which investors are looking for before committing more to equities.
BCHB posted net profit of RM663.15 million for the second quarter ended June 30, 2009, an improvement from RM650.15 million a year ago. The net profit was also higher by 8% from 1Q.
BCHB said on Aug 12 revenue surged to RM2.589 billion from RM2.157 billion while earnings per share were 18.79 sen compared with 19.43 sen.
AirAsia posted an operating profit of RM128.4 million, a 328% increase over the RM30 million a year ago, underpinned by higher passenger volume, better contribution and writeback on certain over provisions.
Mah Sing resumes trading after a one-day suspension where it acquired a 115-acre piece of land in Cyberjaya and plans to undertake high-end residential development project with a gross development value (GDV) of RM690 million.
Managing director and CEO Tan Sri Leong Hoy Kum said on Aug 12 the land was acquired for RM130.5 million and would be used for medium to high end residential development.
Scomi Engineering's 2Q net profit rose 116% to RM19.2 million from the RM8.9 million a year ago, boosted by stronger contributions from the rail business and higher margins from its machine shop operations.
Revenue was 15% higher at RM151 million.
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