Written by Joseph Chin
Thursday, 03 June 2010 07:49
KUALA LUMPUR: Key regional markets may trend upwards on Thursday, June 3, riding on the overnight rebound on Wall Street as investors picked up battered stocks, including energy companies.
The Dow Jones industrial average gained 225.52 points, or 2.25%, to 10,249.54. The Standard & Poor's 500 Index rose 27.67 points, or 2.58%, to 1,098.38. The Nasdaq Composite Index climbed 58.74 points, or 2.64%, to 2,281.07.
Investors also were encouraged by data showing pending sales of previously owned homes increased to a six-month high in April, though analysts pointed to a rush to take advantage of the home buyer's tax credit before it expired, according to Reuters.
Stocks to watch will be MALAYAN BANKING BHD [] (Maybank), Iris Corp Bhd, Loh & Loh Corporation Bhd, steelmaker Malaysia Steel Works (KL) Bhd (Masteel) and PRINSIPTEK CORPORATION BHD [].
Maybank’s head of consumer banking Lim Hong Tat sees its consumer loans segment growing by 15% and consumer deposits by 10% on-year for its financial year ending June 30, 2010.
He said the bank was seeing a 15% annualised growth in consumer loans, ahead of the industry’s annualised average of 10%. Its loan portfolio was over RM70 billion.
Iris Corp is working with WRP Asia Pacific Sdn Bhd to venture into biomass power generation, fuelled by oil palm empty fruit bunches or such other renewable biomass. The deal is estimated to be worth RM135 million.
Under the plan, WRP will tap into the electricity, steam, hot water and chilled water to be used in WRP plants. The JV hopes to sell electricity to TENAGA NASIONAL BHD [] under the small renewable energy power programme.
Loh & Loh Corp expects to start work on the RM828.33 million Hulu Terengganu hydroelectric dam project in October.
CEO Jason Loh expects the project to be a good platform to establish its ability and skills. Loh & Loh’s 60% Sinohydro Corporation Ltd-Loh & Loh CONSTRUCTION []s Sdn Bhd, had at end-March secured the RM828.33 million contract from Tenaga Nasional Bhd for the civil works of the dam project.
Masteel, meanwhile, is teaming up with Belgium's Ion Beam Application SA (IBA SA) group to strengthen its business in the development of radioisotopes and radiopharmaceuticals products.
Prinsiptek Corporation Bhd is hoping to increase revenue contribution from its property development arm to 20% this year, with three projects worth RM220 million to be launched by the end of the year.
Group managing director Foo Chu Jong said the projects — in Shah Alam, Bangi and Tamansari — would increase contribution from its property arm to the group’s revenue that was now mainly derived from construction.
BERJAYA CORPORATION BHD [] (BCorp) group of companies have remained as substantial shareholders of TMC LIFE SCIENCES BHD [], STEMLIFE BHD [] and REDTONE INTERNATIONAL BHD [] despite the cessation of Hotel Resort Enterprise Sdn Bhd (HRE) as one.