Stocks to watch: Puncak Niaga, Berjaya Corp, BAT, WCT, Bintulu Port, glove makers


KUALA LUMPUR: Local investors will be looking towards sentiment at regional markets on Thursday, Oct 21, after volatile trading on Oct 20 saw the FBM KLCI claw back to reduce its losses to just 1.8 points from having been down more than 12 points early on Wednesday.

Asian markets fluctuated on Wednesday after China had triggered a global equities sell-off a day earlier when its central bank raised interest rates by 25 basis points, the first in nearly three years.

However, some of the Asian markets pared down losses yesterday after the initial panic over the rate hike wore off.

On Bursa Malaysia, among the stocks that could be in focus today are PUNCAK NIAGA HOLDINGS BHD [], BERJAYA CORPORATION BHD [], BRITISH AMERICAN TOBACCO (M) [] Bhd, WCT BHD [], BINTULU PORT HOLDINGS BHD [], glove manufacturers.

Puncak Niaga has entered into two separate joint venture agreements with P&C CONSTRUCTION []s (P) Ltd in India to jointly bid the for water supply and flourosis mitigation project called the Tamilnadu Water Supply and Drainage Board in India.

In a filing to Bursa Malaysia, Puncak Niaga said together with P&C Constructions, it would form a joint venture (JV) called PNHB-P&C Joint Venture to bid for Packages III and V of the Hogenakkal project for the Dharmapuri and Krishnagiri districts.

Puncak Niaga will lead the JV with a 60% stake while P&C Constructions will have 40%.

Berjaya Corp has secured a manufacturing plant licence from the Ministry of International Trade and Industry Malaysia for the assembly of commercial vehicles, hybrid cars, electric cars and luxury passenger vehicles in Malaysia.

The 100-acre plant will be based at Bukit Tagar, Selangor.

Berjaya Corp chairman and CEO Tan Sri Vincent Tan said the licence would provide the company the opportunity to assemble commercial and passenger vehicles locally, giving it more flexibility and control in terms of quality and pricing.

“Besides strategically complementing and widening our existing range of motor brands, this will also be a good opportunity for Berjaya Corp to promote green TECHNOLOGY [] through the development of hybrid and electric vehicles, which are more environmentally friendly. In line with this, we hope to expand our market share and develop a more global presence,” he said.

BAT declared a second interim dividend of 64 sen per share, tax exempt under the single-tier tax system totaling RM182.74 million in respect of the financial year ending Dec 31, 2010.

Its net profit for the third quarter ended Sept 30, 2010 rose 2.4% to RM170.65 million from RM166.73 million a year ago, on the back of revenue RM993.59 million.

Earnings per share was 59.8 sen, while net assets per share was RM1.71.

WCT secured two separate contracts in Qatar and Malaysia for a total of approximately RM1.49 billion.

The first was a contract by the government of Qatar to build and maintain a government administrative building in Doha for a lump sum equivalent to RM1.36 billion.

In a separate announcement, WCT said it had accepted a contract from the Public Works Department Malaysia to design, build and maintain the Tuaran Hospital in Sabah for RM127.8 million.

Both the projects are targeted to be completed by May 2013.

Bintulu Port Holdings received a letter of intent from the Sarawak state government to submit a detailed proposal for the development, management and operation of the Samalaju Port.

In a filing to Bursa Malaysia yesterday, Bintulu Port said the proposal, if accepted and approved, would result in its appointment to build, own, operate and manage the new port.

Meanwhile, glove makers could extend their gains after CIMB Research maintained its overweight call on the sector.