Business & Markets 2012
Written by Surin Murugiah of theedgemalaysia.com
Tuesday, 05 June 2012 00:00
KUALA LUMPUR (June 5): The FBM KLCI could extend its losses on Tuesday, as uncertainties in Europe and weak employment data have kept global investor sentiment on tenterhooks since last week.
The local bourse fell 1.17% to kick the week on a tepid note amidst falling crude palm oil (CPO) prices to the lowest level in 2012, against optimism over the global economic recovery evaporated against the backdrop of a gloomy economic outlook for the troubled eurozone and slower growth indicators emanating from China.
With the first quarter earnings season now over, and limited corporate news flow on Bursa Malaysia (with the exception of the impending listing of the much hyped Felda Global Ventures Holdings Bhd listing at the end of June), investors have been left struggling for direction on the local market, looking more at external issues.
Among the stocks that could be in focus on Bursa Malaysia are the Genting group, ALAM MARITIM RESOURCES BHD [], banking stocks and PLANTATION []-related counters.
Genting New York LLC will participate in the bid process for the convention centre in Queens, New York when it is announced, said Genting Malaysia Bhd (Genting).
Genting shares fell on Monday following a report in the New York Times last week that negotiations between the state of New York and Genting to build a convention centre and casino in the city had broken down.
Last Friday, Genting New York had also announced that "the uncertainties and difficulties regarding the constitutional amendment, competitive landscape, tax rate and infrastructure support made any decision difficult".
Alam Maritim's jointly-controlled company Alam Radiance (L) Inc has inked a memorandum of agreement with Pacific Crest Pte Ldt to acquire a 402 Men/100 M accommodation work barge for US$31.55 million (RM94.65 million) as part of its fleet expansion plan. In a filing on Monday, Alam Maritim said the acquisition was in line with the fleet expansion plan of the group's core business in providing marine support services to the offshore oil and gas facilities.
Banking stocks that fell on Monday could extend losses, as investor sentiment remains fragile over economic growth prospects.
Meanwhile, plantation-related stocks could come under selling pressure as CPO futures dipped to below the RM3,000 per tonne mark. CPO futures for the August delivery fell RM48 per tonne to RM2,958.