Business & Markets 2012
Written by Chong Jin Hun of theedgemalaysia.com
Monday, 09 April 2012 19:47
KUALA LUMPUR (April 9): Malaysian shares could see further correction on Tuesday against a backdrop of less-optimistic global economic data. Crucial highlights include the still-weak job market in the US, besides China's inflation growth of 3.6% in March. China's latest inflation numbers, which came in higher than street estimates, have prompted the anticipation that policymakers will delay monetary loosening to spur the world's second largest economy. Analysts said Malaysia's FBM KLCI may see sideway consolidation with downward bias, due to global economic concerns. "Domestically, any correction in the benchmark index is expected to be shallow, with domestic factors holding up the market until the dissolution of the parliament paves way for the next general election," TA Securities Holdings Bhd wrote in a note. On Monday, the FBM KLCI fell 7.59 points to close at 1,591.28, while US equity futures declined on global economic growth concerns.
The S&P 500 futures fell some 1% while the Dow Jones Industrial Average futures was down 0.9%, an indication that US stock markets could decline when markets open. Stocks to watch on Tuesday include LPI CAPITAL BHD , HONG LEONG BANK BHD , GUAN CHONG BHD , HUA YANG BHD , Silk Holdings Bhd. LPI's net profit fell 19% in the first quarter ended March 31, 2012 from a year earlier, as the general insurer's contractual liabilities, lower investment income, and higher operating expenses offset a higher revenue. In a statement to the exchange on Monday, LPI said its net profit during the quarter came to RM31.48 million against RM38.63 million previously. Revenue rose 15% to RM246.06 million from RM213.33 million .
The Securities Commission has approved Hong Leong's plan to issue up to US$1.5 billion (RM4.61 billion) worth of bonds to finance its working capital needs. Cocoa processor Guan Chong plans to undertake a secondary listing on the Singapore bourse. The firm also plans to reward shareholders with a bonus issue of new shares. TA Securities has upgraded Hua Yang, a property developer, to a "buy" from "hold" with a target price of RM1.68. PETROFAC (M) Ltd has extended its anchor handling tug supply vessel contract with Silk in a deal worth RM10.77 million. The company said the contract extension was expected to contribute positively to its earnings for the financial years ending July 31, 2012 and 2013.