Written by The Edge Financial Daily
Friday, 21 May 2010 07:50
KUALA LUMPUR: Key regional markets are expected to come under selling pressure again on Friday, May 21 after US stocks fell more than 4% overnight on growing worries Europe’s debt crisis will derail global economic recovery.
The S&P 500 closed 12% down from its intra-year high of April 23, 2010, signaling a correction and marking the worst day since late April 2009. The slide can be attributed to worries over Greece's debt crisis to Germany's unilateral decision this week to ban naked short-selling.
Overnight, the Dow Jones industrial average dropped 376.36 points, or 3.60%, to end at 10,068.01. The Standard & Poor's 500 Index slid 43.46 points, or 3.90%, to 1,071.59. The Nasdaq Composite Index lost 94.36 points, or 4.11% to 2,204.01.
At Bursa Malaysia, the weak external markets will weigh on sentiment and the FBM KLCI is expected to fall below the key 1,300 level.
While there could be some bargain hunting for oversold stocks, the buying could be intermittent as investors fear another leg down.
Stocks to watch on Friday include SIME DARBY BHD [], CIMB Group Holdings Bhd, JCY International Bhd and KOSSAN RUBBER INDUSTRIES BHD [], MULPHA INTERNATIONAL BHD [], SUNRISE BHD [] and RANHILL BHD [].
The Minority Shareholder Watchdog Group (MSWG) wants Sime Darby Bhd to be accountable to its shareholders for its massive losses at its energy and utilities (E&U) division.
Sime Darby chairman Tun Musa Hitam was reported to have said the probe had widened to cover all its six division.
On the positive note, CIMB’s first quarter net profit rose 36.5% on-year to RM838 million as its expansion into the Indonesian market paid off. Revenue was also higher at RM2.84 billion from RM2.51 billion previously.
While its Thai operations also turned a profit, CEO Datuk Seri Nazir Razak said the group was keeping a close eye on the turmoil in Bangkok, which has seen several banks being torched.
JCY International Bhd's net profit rose 38% to RM65.88 million in its second quarter (2Q) ended March 31, 2010 from RM54.4 million a year earlier as demand picked up following the recovery of the hard-disk drive (HDD) industry.
Revenue and profit before tax (PBT) grew 58.7% and 21.7% to RM549.7 million and RM66.2 million from a year earlier, while earnings per share rose to 3.22 sen from 2.66 sen. It declared an interim dividend of 3.91 sen.
Kossan’s first quarter net profit more than doubled to RM30.38 million from a year earlier as turnover rose, helped by higher output and selling prices which led to fatter profit margins during the period. Revenue rose 29.8% to RM262.77 million from RM202.37 million. It also saw earnings per share of 19 sen versus 8.78 sen previously.
Mulpha International posted a net profit of RM48.3 million in its first quarter ended March 31, 2010 versus a net loss of RM12.03 million a year earlier as the real estate and hospitality group booked more profit from its associates. Its bottom line was also helped by a RM29.85 million gain derived from the sale of a portion of its stake in associate MUDAJAYA GROUP BHD [].
On a quarterly basis, net profit fell 21.9 % from RM61.83 million in the preceding fourth quarter while revenue was down 37.3% from RM235.87 million..
Property developer Sunrise Bhd, synonymous with the exclusive enclave of Mont’ Kiara here, has unveiled Publika - the country’s first creative retail centre, integrating art and culture with urban shopping and dining.
Ranhill Bhd has proposed to dispose of a 20% stake in its unit Ranhill Powertron II Sdn Bhd (RPII) to state-owned Sabah Energy Corp Sdn Bhd for RM73 million cash, which will see them becoming joint owners of a power-generation concession in the state.
1 comments:
kossan is good stock but due to appreciation of RM maybe the export will be affected. However, the company is able to pass the cost to the customers.