| Written by Surin Murugiah of theedgemalaysia.com |
| Sunday, 20 May 2012 15:16 |
Grand-Flo's unit E-Tech IT Sdn Bhd has secured a received a RM82.0 million order to supply the information and communication TECHNOLOGY [] (ICT) equipment for a government-related project in Malaysia. The FBM KLCI fell a whopping 51.86 points week-on-week last Friday which saw its market capitalisation erased by RM56.41 billion. World stocks erased the year's gains on Friday as investors fled risky investments for safe-haven assets on concerns about the eurozone's deepening debt woes, while US stocks lost ground after the debut of Facebook's failed to ignite optimism, according to Reuters. Investors were unnerved by a ratings downgrade of 16 Spanish banks by Moody's Investors Service, which deepened worries about the eurozone contagion. But market speculation that regulators could reinstate a ban on short selling of financial stocks sparked a rally in banking shares, with Spain's Banco Santander up 3%. US-listed shares of Banco Santander rose 3.6% to end at US$5.76 (RM17.97), it said. Spain's banks, saddled with bad loans after a property boom collapsed, may need a bailout that would strain Madrid's already stretched finances and possibly require an international bailout regardless of any contagion threat from Greece, said Reuters. With limited fresh corporate developments on the local front and the unresolved eurozone debt crisis, investors have little reason for excitement. MIDF Research head of equity Syed Muhammed Kifni said the heightened likelihood of a Grexit (Greece exit from the Eurozone) and its sUStemic implications on the Euro region banking system spooked equity markets worldwide. He said the Euro fell against US Dollar as investors sought the safety of a safe-haven and the greenback appreciated against most other currencies as some carry trade liquidity were returning home. Syed Muhammed said that technically, while the FBM KLCI still remained above the 200-day moving average line, most other markets had breached below the threshold line hence a regional bearish tide may overwhelm the local barometer in the near term. He said therefore, he expects the FBM KLCI to remain jittery this week. Moreover, the risk-off mood was not going to go away so soon and the market may continue to be depressed during the remainder of May, he said. "While we take cognisance of a stock market adage which says 'do not catch a falling knife', nonetheless we believe that it is a good opportunity to accumulate", he said. On Bursa Malaysia, among the stocks that could be in focus early in the week are Sunway Bhd, TRC Synery Bhd, FAVELLE FAVCO BHD [] and Grand-Flo Solutions Bhd. Sunway's unit Sunway CONSTRUCTION [] Sdn Bhd (SunCon) received a letter of award worth RM1.17 billion from Mass Rapid Transit Corporation Sdn Bhd to build the viaduct guideway and other associated works from Section 17, Petaling Jaya to Semantan Portal under the Sg Buloh-Kajang (SBK) MRT Line, Package V4 project. In a filing to Bursa Malaysia Securities Bhd on Friday, Sunway said construction period of the project was 45 months. TRC Synergy's unit Trans Resources Corporation Sdn Bhd has received a contract worth RM458.98 million from Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) to build the Sungai Buloh maintenance depot and associated works for the Jajaran Sungai Buloh-Kajang MRT project. Favelle Favco's unit Favelle Favco Cranes (M) Sdn Bhd secured contracts worth a total RM60.1 million from four orders for cranes in the months of April and May. In a filing to Bursa Securities on Friday, Favelle Favco said its unit received orders from Shin Yang Shipyard Sdn Bhd, Malaysia Marine & Heavy Engineering Sdn Bhd, Favco International (Shanghai) Co Ltd (Favco Itl) and Apache Energy Ltd to supply each with an offshore tower crane between mid and end 2013 (barring Favco Itl, which ordered a tower crane to be delivered in 2012 |
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