Written by Joseph Chin
Wednesday, 26 August 2009 07:33
KUALA LUMPUR: Bank Negara is scheduled to release its second quarter GDP data on Wednesday, Aug 26 and expectations are a smaller contraction in the economy after the 6.2% year-on-year decline in 1Q.
Positive signs are emerging and this could see a revision in the earlier official 4% to 5% contraction in the overall GDP for this year.
Bank Negara kept the Overnight Policy Rate (OPR) unchanged at 2% on Aug 25 and it forecasts GDP to improve in 2H of 2009 and into 2010, following a recovery in domestic demand as the global economy stabilises.
Bank Negara said since the Monetary Policy Committee meeting in July, more signs have emerged to suggest that global economic and financial conditions are improving.
In the US, stocks rose on Tuesday, Aug 25 as economic data and the renomination of Federal Reserve chief Ben Bernanke reassured investors and offset concerns about red ink in the federal budget,
The Dow Jones industrial average advanced 30.01 points, or 0.32 percent, to 9,539.29. The Standard & Poor's 500 Index gained 2.43 points, or 0.24 percent, to 1,028.00. The Nasdaq Composite Index rose 6.25 points, or 0.31 percent, to 2,024.23.
The three major indexes closed at 2009 highs, although they were off the year's intraday highs reached after the stronger-than-expected economic data. But in a repeat of Monday's action, the rally cooled somewhat in the afternoon.
Oil prices fell 3% as dealers rushed to take profits from a rally that had culminated in a 10-month peak earlier in the day. U.S. crude oil dropped US$2.32 to settle at US$72.05 a barrel, down from a high of US$75, in the biggest percentage loss since August 14. Brent crude dropped $2.44 to $71.82.
At Bursa Malaysia, stocks to watch include MALAYAN BANKING BHD [] which suffered a net loss of RM1.118 billion in the fourth quarter ended June 30(4Q) compared with a net profit of RM792.21 million a year ago.
Maybank made an impairment charge of RM1.617 billion on goodwill arising from its 97.5%-owned PT Bank Internasional Indonesia Tbk (BII) banking business operations and an additional impairment loss of RM111 million for the investment in MCB Bank
For FY09, it was still profitable with net profit of RM691.87 million for its financial year ended June 30, 2009 from RM2.93 billion a year ago. Revenue was higher at RM17.58 billion compared with RM16.15 billion. Earnings per share were RM12 sen compared with 53.32 sen.
Genting PLANTATION []s Bhd posted sharply lower net profit of RM59 million for the second quarter ended June 30 from RM115.08 million a year ago due to lower crude palm oil prices and lower fresh fruit bunches.
ANN JOO RESOURCES BHD [] posted very sharply lower net profit of RM2.22 million in the second quarter ended June 30 from RM180.51 million a year ago due to lower steel prices which resulted in a margin squeeze.
Fajarbaru Builder reported higher earnings for 4Q ended June 30 on the back of higher revenue contribution from its CONSTRUCTION [] activities.
Fajarbaru's net profit had risen 70% to RM6.1 million from RM3.59 million a year ago. Revenue rose 76.88% year-on-year to RM55.17 million in 4Q09 from RM31.19 million in 4Q08.