Stocks to watch: Astro, SapuraCrest, MAHB, Mudajaya

Written by Tony Goh
Friday, 11 September 2009 07:53

KUALA LUMPUR: Stocks could hold on to some their gains on Friday, Sept 11 after Wall Street closed higher for a fifth straight session on Thursday, but investors' interest could focus on Astro, SapuraCrest, Malaysia Airports Holdings Bhd (MAHB), Mudajaya and Proton on fresh corporate news.

Overnight, the Dow Jones industrial average was up 0.84% at 9,627.48. The Standard & Poor's 500 Index gained 1.04% at 1,044.14. The Nasdaq Composite Index was up 1.15% at 2,084.02.

On Thursday, the FBM KLCI climbed to new 14 month high of 1, 209, up 12.54 points, or 1%.

However, some analysts also said while the outlook was positive in the current term, there could also be some profit-taking activities ahead of the weekend, as reflected in the lower closing.

Astro posted a net profit of RM27.8 million in the second quarter ended July 31, 2009, a turnaround from a net loss of RM247.32 million a year ago. It is also investing

Astro TV also announced that it will accelerate its plans to introduce High Definition television to Malaysians within this financial year, thus confirming its market leadership.

It will invest an additional RM200 million (of which RM100 million is capital in nature), to deliver the broadcast of High Definition television to retain its market leadership in Malaysia.

SapuraCrest Petroleum posted net profit of RM52.36 million in its second quarter ended July 31, 2009, up 63% from RM32.10 million a year ago as activities in the installation of pipelines and facilities (IPF), marine services and operations and maintenance divisions picked up.

Malaysia Airports Holdings could see some trading interest after 5% of its shares were traded in an off-market deal. It is learnt that Khazanah had placed out the shares to institutional funds in a move to create more liquidity for the stock.

Proton is reported to be in talk with Volkswagen which could focus on collaboration in the assembly of vehicles at Proton's plant in Tanjung Malim. VW is not expected to take an equity stake in Proton.

Mudajaya is expected to see some buying interest after its subsidiary clinched a US$55 million joint venture project in Vietnam. Mudajaya's portion of the project is worth US8.56 million or RM30 million.