Written by Joseph Chin
Tuesday, 02 November 2010 08:03
KUALA LUMPUR: Key regional markets may extend gains on Tuesday, Nov 2 after surging on Monday after manufacturing strengthened in the United States and China, the world's two largest economies.
However, there could be intermittent profit taking as investors look to lock in gains ahead of the US Federal Reserve meeting on Wednesday. Most key Asian markets surged except for Japan.
On Wall Street, the Dow Jones industrial average was up 50.86 points, or 0.46 percent, at 11,169.35. The Standard & Poor's 500 Index was up 4.64 points, or 0.39 percent, at 1,187.90. The Nasdaq Composite Index was up 3.83 points, or 0.15 percent, at 2,511.24.
At Bursa Malaysia, stocks to watch include CHANGHUAT CORPORATION BHD [], TH PLANTATION []s Bhd, KUALA LUMPUR KEPONG BHD [], HOVID BHD [] and CAROTECH BHD [].
VASTALUX ENERGY BHD [] is partially through its debt restructuring scheme after one out of two group of creditors adjourned its meeting with the company.
Changhuat could face suspension with effect from Nov 9 after it failed to submit its annual audited financial statements for the financial year ended June 30, 2010.
The company had failed to submit the statements for public release within the stipulated timeframe under Bursa Securities' Main Market Listing Requirements.
TH Plantations' net profit surged 68% to RM21.53 million for the third quarter ended Sept 30, 2010 (3Q10) from RM12.84 million a year ago mainly due to higher revenue, lower cost of sales and higher gross profit margin. Revenue for 3Q10 rose 17% to RM84.22 million from RM72.12 million due to higher prices for crude palm oil (CPO) and palm kernel (PK).
KL Kepong’s subsidiary is acquiring PT. Anugrah Surya Mandiri (PT ASM), which holds a certificate for 3,700 hectares in Indonesia, for RM4.72 million cash.
KLK said PT ASM holds a certificate of “Izin Lokasi” for the land in Kampung Batu Putih, Kabupaten Berau. The proposed acquisition is in line with KLK’s strategy to further increase KLK Group’s oil palm plantation area in Indonesia.
Hovid and Carotech could continue to see selling pressure following the latest negative development in their financial conditions. Hovid plunged five sen to 13.5 sen in active trade while its subsidiary Carotech fell two sen to five sen on Monday.
Hovid triggered the Practice Note 17 after Carotech defaulted on the repayment of certain borrowings.