WILL TENAGA RALLLLLYYYY TOMORROW, I have tenaga-cl to unload.
KUALA LUMPUR: With the FBM KLCI managing to rebound to close sharply higher on Thursday, Aug 26, investors could see more follow-through buying interest on Friday for companies which posted strong set of earnings including CIMB Group and Genting Bhd. However, this would also hinge on external factors including Wall Street and concerns about a weakening economy. With the weekend ahead, there could be some profit taking in the later part of Friday. The FBM KLCI is again at a fresh 30 month high and year-to-date, it is up 10.62% when it closed at 1,408. It is the fourth best performing stock market, based on the 30-stock FBM KLCI, in Asia. Jakarta is the best performer, up 24.1%, Thailand 20.63% and the Philippines 17.78%. Singapore’s STI is just up 0.97%. The worst performer is Shanghai’s Composite Index, down 20.56% while the Nikkei 225 is down 15.55% and Hong Kong’s Hang Seng Index 5.76%. Stocks to watch include Tenaga Nasional which proposed a bonus issue of 1.119 billion bonus shares on a one-for-four basis and it also plans to double the authorised share capital to 10 billion shares.
CIMB Group Holdings Bhd posted a strong set of financial results for the second quarter ended June 30, 2010 with net profit of RM889.46 million, which was 34.1% above the RM663.15 million a year ago. The stronger earnings were supported by a strong rebound in corporate and investment banking, surge in contribution from CIMB Niaga and drop in loan loss provisions.
Genting Bhd’s second quarter earnings surged 244% to RM739.17m from RM214.49m yr ago while revenue doubled to RM4.08 billion from RM2.1 billion. It declared dividend of 3.3 sen. However, Genting Malaysia Bhd’s 2Q earnings fell 7.5% to RM305.69 million from RM330.48 million a year ago. Revenue was marginally higher at RM1.22 billion versus RM1.20 billion. It declared a dividend of 3.6 sen. Meanwhile,
Sime Darby could see some selling pressure after it posted net loss of RM77.35 million for the fourth quarter, stark a contrast from its net profit of RM984.04 million a year ago. The losses followed additional provisions for the loss-making energy and utilities (E U) division. For the financial year ended June 30, it posted net profit of RM726.85 million compared with RM2.28 billion in net profit for FY09. The E U division reported an operating loss of RM.75 billion for FY2010 after making additional provisions of RM777.3 million for 4QFY2010. “Including the RM1.308 billion provisions up to 3QFY2010, the total provisions for foreseeable losses and impairments for the full year amounted to RM2.085 billion,” it said.
Tenaga Nasional Bhd has proposed a bonus issue of 1.119 billion bonus shares on a one-for-four basis. The power giant said on Thursday, Aug 26 the bonus share would be implemented at an entitlement date to be determined by the board and announced later by the company. It also proposed to increase the authorised share capital of the company from RM5 billion comprising five billion shares to RM10 billion comprising of 10 billion shares.