Written by Joy Lee
Tuesday, 02 March 2010 08:49
KUALA LUMPUR: The Malaysian stockmarket barometer is expected to advance further Tuesday, March 2 after yesterday's 1% gain, as investors digest updates on corporate Malaysia's strong fourth quarter earnings, and substantial gains across US equities a night earlier.
In Malaysia, the FBM KLCI started the week on firm footing, gaining 12.62 points to 1,283.40. Stocks to watch include REDtone International, HONG LEONG BANK BHD [], DIGI.COM BHD [], Axiata Group Bhd and RAMUNIA HOLDINGS BHD [].
REDtone has been awarded a content applications service provider individual licence for its IPTV service.
Hong Leong’s joint venture (JV) in China with Bank of Chengdu has obtained regulatory approval to commence the operation of its finance company in central and western China. The JV, Sichuan Jincheng Consumer Finance Limited Company, is among the three that have attained such approval.
The JV would tap the high margin consumer financing business in China supported by its large population.
Meanwhile, Axiata’s wholly owned unit, Celcom Axiata Bhd, plans to spend RM900 million to RM1 billion in capital expenditure (capex) this year from RM700 million in 2009. Forty percent of its capex will be used to improve its 3G and data infrastructure. The telco provider plans to up the ante ahead of the intense competition predicted for 2010.
Another telco, DiGi, may also draw some interest following the announcement that it signed an agreement to sell Apple Inc’s iPhone in Malaysia to tap growth in a market that it forecasts will surge 10-fold in five years.
The deal will end Maxis Communications Bhd’s monopoly on selling the iPhone in Malaysia.
Ramunia came under selling pressure on Monday. The PN17 company slipped 48% or 19.5 sen to 20.5 sen, the lowest level since its listing in January 2005.
Additionally, Bursa-listed Chinese sports footwear companies such as Xingquan International Sports Holdings Bhd and Xidelang Holdings Ltd may see some interest after K-Star Sports Ltd (K-Star), another sports footwear company in China, obtained the Securities Commission’s approval for its proposed listing on the Main Market of Bursa Malaysia Securities Bhd.
In the US, the Dow Jones Industrial Average rose 0.76% to close at 10,403.79 in overnight trade, Nasdaq jumped 1.58% to 2,273.57, while S&P 500 was up 1.02% to 1,115.71.
