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Written by Joseph Chin of theedgemalaysia.com
Thursday, 14 April 2011 08:00
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KUALA LUMPUR: After the surprising surge in the afternoon session in line with key regional markets on Wednesday, April 13, the market could extend its gains on Thursday, underpinned by the fresh news flow from the Invest Malaysia conference.
However, some concerns about the outcome of the Sarawak polls due this Sunday, April 16 and continued high oil prices and resulting inflationary pressure could hold gains in check.
On Wall Street, U.S. stocks finished mostly flat in a choppy session on Wednesday, as investors bet on strong TECHNOLOGY [] earnings even as JPMorgan Chase's numbers weighed on other market sectors.
The Dow Jones industrial average gained 7.41 points, or 0.06 percent, to 12,270.99. The Standard & Poor's 500 Index inched up 0.25 of a point, or 0.02 percent, to 1,314.41. The Nasdaq Composite Index added 16.73 points, or 0.61 percent, to 2,761.52.
Stocks to watch on Thursday include SP SETIA BHD [], Malaysia Airports Holdings Bhd (MAHB), ALAM MARITIM RESOURCES BHD [], Masterskill Education Group Bhd (MEGB), DRB-HICOM BHD [] and BERJAYA SPORTS TOTO BHD [].
SP Setia Bhd is planning to enter the Singapore market and launch its first residential development by the end of the year.
Its president and CEO Tan Sri Liew Kee Sin said the plans are still preliminary at the moment, but it is looking at building condominiums and high-rise residential units that are catered to Malaysians.
SP Setia would be launching its Fulton Lane residential development in Melbourne with a gross developmental value of A$450 million soon.
MAHB is expecting to see 12% year-on-year growth in passengers for the first three months of the year, compared with the earlier forecast of 7%.
Alam Maritim Resources Bhd’s unit has secured RM24.24 million contracts to supply two vessels to an independent oil and gas exploration and production company.
Its unit Alam Maritim (M) Sdn Bhd would provide one anchor handling tug supply vessel and one fast multipurpose supply vessel.
MEGB, its group CEO and PT Sejahteraraya Anugrahjaya Tbk (PTSA) are teaming up to look into the setting up of a university in Indonesia. They will form a joint venture company in Indonesia with proposed paid-up capital of US$10 million wherein
MEGB and its CEO will each hold a 30% stake and the remaining 60% by PTSA. PTSA is listed on the Stock Exchange of Indonesia and is the owner of Mayapada Hospital in Indonesia.
DRB-Hicom Bhd’s unit Puspakom Sdn Bhd has signed an MoU with the government to undertake the hire purchase inspection services for all vehicles.
DRB-Hicom said the inspection services would be undertaken following the implementation of the newly amended Hire-Purchase Act 1967 (Amended 2010).
BToto says it is currently no longer pursuing a possible corporate exercise which may result in the entry of a strategic investor.
Instead, the board “has and will continue to manage its business and capital diligently with the aim of creating value and enhancing shareholders returns”.
MALAYSIAN AIRLINE SYSTEM BHD []’s (MAS) earnings in the first quarter ended March 31, 2011 were impacted by the higher fuel prices, said its managing director and chief executive officer Tengku Datuk Azmil Zahruddin said.
He said the high fuel price is “definitely making a negative impact on us”. Tengku Azmil said about 25% of the airline’s jet fuel for 2011 was hedged at US$90 per barrel but the price was now about US$140. On April 1, it was US$136.40.
Khazanah Nasional Bhd, the government's investment arm, has decided on the potential buyer for its 32.21 per cent stake in postal service provider, POS MALAYSIA BHD [].
"We already have a winner in mind," said Khazanah managing director Tan Sri Azman Mokhtar. However, he declined to narrow the identity of the "winner" but said the names would be submitted to the board later this month.
The three shortlisted bidders are speculated to be DRB-Hicom, NATIONWIDE EXPRESS COURIER SER []vices and a Amanah REIT-Malaysia Pacific Corp joint venture, wit offers ranging between RM3.38 and RM4.62 per share. The other two bidders were Scomi Bhd and TRICUBES BHD [].
Low-cost carrier AIRASIA BHD [] said its load factor for the first quarter of 2011 was at 81% versus 74% a year ago.
Its chief executive Datuk Seri Tony Fernandes said AirAsia, Asia's largest low-cost carrier by fleet size, was on track to list its Thai and Indonesian units in the fourth quarter of 2011.
Guocoland Bhd posted net loss of RM3.64 million in the third quarter ended March 31, 2011, which was narrower compared with net losses of RM5.65 million a year ago.
It reported revenue of RM23.95 million, down from RM42.42 million a year ago. Loss per share was 0.54 sen compared with 0.84 sen.
For the nine-months, its net loss was RM2.38 million compared with net profit of RM2.49 million in the previous corresponding period. Revenue was RM84.29 million versus RM130.49 million a year ago. Its net asset per share was RM1.12.
According to the notes to the accounts, it had short-term and long-term borrowings of RM786 million as at March 31, 2011.