Written by Darlene Liew & Joseph Chin
Friday, 29 January 2010 07:47
KUALA LUMPUR: Key regional markets including Bursa Malaysia are likely to end January on a weak note as investors' sentiment continue to be weighed down by external factors, including the US.
Investors can expect a volatile day aain, with downside pressure on Friday, Jan 29 after US stocks dropped on Thursday, Jan 28 as poor outlooks from Motorola and Qualcomm dented optimism in the TECHNOLOGY [] sector while worries about Greece's fiscal health dragged on sentiment.
The Dow Jones industrial average fell 115.70 points, or 1.13 percent, to end at 10,120.46. The Standard & Poor's 500 Index lost 12.97 points, or 1.18 percent, to 1,084.53. The Nasdaq Composite Index declined 42.41 points, or 1.91 percent, to close at 2,179.00.
On the home front, several companies have reported firmer, if not better earnings. AmResearch also says the cyclical bull rally has not prematurely ended and more upside for the market can be expected from a fundamental standpoint.
Stocks to watch include HONG LEONG BANK BHD [] as it may have to raise capital to fund its acquisition of EON CAPITAL BHD []'s (EONCap) entire assets and liabilities should it increase the offer price.
Other companies on the watchlist are HARTALEGA HOLDINGS BHD [], MAH SING GROUP BHD [], PETRA PERDANA BHD [], GADANG HOLDINGS BHD [], SUNRISE BHD [] and Perstima Bhd.
Hartalega ’s net profit jumped 67% to RM37.2 million in its third quarter ended Dec 31, 2009 (3QFY10) versus RM22.23 million a year earlier on the back of higher sales and improved efficiency. Revenue rose 25% on-year to RM148.6 million from RM119.06 million.
Mah Sing aims for property sales to climb 39% to RM1 billion this year as an economic recovery spurs home purchases in the country.
Gadang's 2Q net profit surged 88% to RM3.52 million from RM1.87 million a year earlier mainly due to lower cost. Its revenue fell 6.9% to RM62.37 million from RM66.98 million.
Perstima’s 3Q net profit surged to RM20.67 million from RM1.22 million a year earlier. This was attributed to the timing difference between the selling price and the raw material price changes coupled with positive contribution from a subsidiary. Its revenue fell 25% to RM210.91 million from RM281.31 million.
Sunrise posted net profit of RM34.52 million for the second quarter (2Q) ended Dec 31, 2009 and is upbeat for the remaining second half due to the locked-in unbilled sales of RM714.1 million as at Dec 31, 2009.
It expects profits from these future billings to be recognised substantially over the current and the following financial year.
In Petra Perdana, executive chairman and CEO Tengku Datuk Ibrahim Petra took another swipe at its suspended executive director Shamsul Saad yesterday ahead of its Feb 4 EGM, demanding that the latter shed light on some of the issues raised.