Written by The Edge Financial Daily
Friday, 07 August 2009 07:49
KUALA LUMPUR: Investors are expected to stay on the sidelines today, Aug 7 after the uninspiring close on Wall Street and concerns of a deepening recession in Britain while at the home front, MAS reported an operating loss but F&N bucked the corporate earnings season.
Overnight on Wall Street, the key indices fell as investors turned cautious on the eve of a crucial government report on July employment, and took profits after recent strong gains.
Losses on Wall Street were broad-based, with the consumer staples and telecommunications services sectors among the drags on the S&P 500.
Stocks to watch include Formis, MAS, AirAsia, F&N and SunCity.
Formis was awarded a RM69.98 million tender by the Legal Affairs Division, Prime Minister’s Department, for an integrated computerised system for the Court (e-KEHAKIMAN) encompassing 166 Courts in five selected states.
MAS recorded an operating loss of RM420.8 million in the second quarter ended June 30 compared with profit of RM62.0 million a year ago mainly due to lower operating revenue, reflecting the difficulties in which airlines are operating within.
Global travel and cargo movements have slumped due to the current economic downturn. However, MAS posted net profit of RM875.51 million in the 2Q, due to a RM1.34 billion fuel hedge gain.
Meanwhile, AirAsia deferred the delivery of eight Airbus A320 from the year 2010 to 2014 as it foresees infrastructural constraints with the current airport facilities and until the new low-cost carrier terminal is constructed.
The low-cost carrier said on Aug 6 that with the deferment, the original delivery of 24 aircraft in 2010 would be reduced to 16 aircraft.
F&N posted net profit of RM59.12 million in the third quarter ended June 30, 2009, up 49% from RM39.65 million a year ago. The earnings were boosted by higher soft drinks sales volume, improved sales mix and increased productivity.
Group operating profit before unusual items, rose 30.5% to RM262.6 million. After accounting for unusual items, group operating profit grew by 21.7% to RM244.9 million. In the first nine months of FY08/09, the Group has already matched the attributable profit for the full FY07/08 year
Sunway City may revive a RM3.01 billion plan to float its property assets through a real estate investment trust (REIT) in 2010 depending on the recovery in markets. Ngeow Voon Yean, managing director for property investment at SunCity said the listing would hinge on the timing.