Written by Joseph Chin
Thursday, 29 July 2010 23:15
KUALA LUMPUR: Blue chips may extend their gains on Friday, July 30 but investors should also brace for some profit taking ahead of the weekend.
The FBM KLCI is up for the fifth straight day and the 30-stock index is currently at the highest since February 2008. The index closed 3.22 points higher to 1,358.41 on Thursday.
Trading volume had also increased to 999.63 million shares worth RM1.48 billion million on Thursday as compared to Wednesday's 847.16 million shares worth RM1.25 billion.
Stocks to watch include SCOMI GROUP BHD []’s subsidiary SCOMI ENGINEERING BHD [], RANHILL BHD [], Fotronics Corp Bhd and TALAM CORPORATION BHD [].
Scomi Engineering Bhd submitted proposals, to upgrade the trains from the existing two-car to four, and is waiting for a decision for the extension of the current KL Monorail line.
Scomi Engineering’s chief operating officer, Azmi Abdul Aziz said the company had submitted its proposals for line expansion and the upgrading of coaches, “but it is up to the government to decide”.
The Edge weekly had on July 19 reported that the Scomi Engineering is poised to be awarded with a RM600 million contract in a bid by the government to fast track the upgrade of public transportation system in the city.
Ranhill Bhd and its partner STS Educational Group Ltd have been pre-qualified by the Bangladesh Power Development Board to undertake a power plant project. They were prequalified to bid for the development of a 150MW to 225 MW combined power plant project at Bhola, Bangladesh.
“The total project cost is estimated at US$200 million. The closing date for the bid is by the last quarter of 2010,” it said.
Fotronics Corp Bhd’s external auditors Messrs. CroweHorwath have expressed concern over the recoverability of trade receivable totaling RM12.7 million due from Futek Incorporated (Japan).
Fotronics said this amount has been long overdue since the financial year ended March 31, 2008.
Property developer Talam Corporation Bhd is planning to clean up its balance sheet by reducing gearing and repaying its debts this year, before launching new projects in the second half of 2011.
The group was also committed on completing and delivering sold units of its current projects in Puchong to purchasers by the end of the current financial year ended Jan 31, 2011 (FY11), said its chairman Adrian Tsen Keng Yew.
“We plan to complete the majority of them by the end of the financial year and deliver them to the purchasers. Once we have done this, only then we could obtain the permits to launch new projects,” he said after the company's AGM