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Gains at the FBM KLCI on Thursday could be capped by cautious sentiment ahead of a crucial European Union leaders’ summit later this week, as pressure mounts on policymakers there to thrash out a definitive plan to salvage the region from a deeper debt crisis.
European shares turned briefly negative on Wednesday after downbeat comments from a German politician about the chances for a comprehensive deal at a leaders' summit this week, aimed at resolving the region's debt crisis, according to Reuters.
Regional markets, including at Bursa Malaysia, had closed higher on Wednesday after the Financial Times reported that European leaders would discuss boosting the firepower of the euro zone bailout fund.
On Bursa Malaysia, among the stocks that could be in focus today are MALAYSIAN AIRLINE SYSTEM BHD [], TOYO INK GROUP BHD [], SANICHI TECHNOLOGY [] BHD [] and BOUSTEAD HEAVY INDUSTRIES CORP []oration Bhd.
MAS aims to fly back into the black by 2013 on the back of an aggressive capacity cut, which is possibly the largest in the airline’s history.
The airline said it would reduce 12% of its capacity and cut unprofitable routes over the next one year, a move that it said would save it some RM300 million, which accounts for over 20% of the RM1.18 billion to RM1.51 billion in cost savings and additional income it aims to achieve under its turnaround plan unveiled yesterday.
MAS also confirmed the launch of a new regional premium airline, which will serve mainly Asian routes, by the middle of next year.
However, the airline will remain in the red this year after posting a RM1.25 billion loss for the first nine months.
Toyo Ink has been given the nod to commence research and development of the proposed US$2.5 billion Song Hau 2 Thermo Power Plant in Vietnam.
The company said on Wednesday that it had a letter from Vietnam's Ministry of Industry and Trade for it to start research and development of the plant with a capacity of 2 X 1000 MW at Song Hau Power Center, Hau Giang Province.
Sanichi, a precision-mould maker, is venturing into the minerals mining and supply business via a collaboration with FIRC Trade (Malaysia) Sdn Bhd. The latter is principally involved in the mining industry as contract owners and joint venture partners with several producing iron ore and coal mines in Malaysia and Indonesia.
Sanichi said under that the collaboration, FIRC would provide technical expertise and engineering support to Sanichi, while the group will co-brand with FIRC for the purposes of marketing and business development.
BHIC’s subsidiary BHIC AeroServices (BHICAS) Sdn Bhd was awarded the certification by Directorate General Technical Airworthiness of the Malaysian Armed Forces, which the Malaysian technical airworthiness authority.
The AMO certification is for the maintainance, repair & overhaul (MRO) of Eurocopter AS555SN Fennec helicopters, it said.
BHICAS is a joint venture between BHIC Defence Technologies Sdn Bhd, a wholly-owned subsidiary of Boustead Penang Shipyard Sdn Bhd, Prestige Pillar Sdn Bhd and Eurocopter Malaysia Sdn Bhd, a wholly-owned subsidiary of Eurocopter.