KUALA LUMPUR (July 19): The FBM KLCI is likely to defy the weaker sentiment at regional markets and build on a sustained momentum to trend higher for a fifth day on Thursday.
Regional markets' optimism over further stimulus by the US Federal Reserve evaporated on Wednesday after its mixed signals on the global economy, according to Reuters. Federal Reserve chairman Ben Bernanke offered a gloomy view of the US economy at a semi-annual Congressional testimony on Tuesday, but hopes that the central bank is moving closer to more stimulus measures limited the day's losses.
Asian stocks mostly retreated on Wednesday after investors were spooked North Korean leader Kim Jong-un being named marshal of the army of the rogue state.
Among the stocks that could be in focus are BURSA MALAYSIA BHD [], George Kent Bhd (GKent), HUA YANG BHD [] and TANJUNG OFFSHORE BHD [].
Bursa Malaysia's net profit for the second quarter ended June 30, 2012 rose 6.27% to RM37.95 million from RM35.71 million a year earlier. Bursa Malaysia declared an interim single-tier dividend of 13.5 sen per share to be paid on Aug 15. Revenue for the quarter was up 4.85% to RM105.96 million from RM101.06 million in 2011.
Earnings per share was 7.10 sen compared to 6.70 sen on 2011, while net assets per share was RM1.65. In a statement on Wednesday, Bursa Malaysia said its total operating revenue was down 2% to RM197.2 million in the first six months of 2012 from RM200.3 million and total operating expenses was down 4% to RM104.9 million from RM109.5 million in the corresponding period.
GKent, which has been put under the limelight over the controversial RM1 billion Ampang line extension job, said it had not received award for the contract. "It is still under evaluation; I don't want to make comments. It has not been awarded. Just wait, once it's awarded we will make a statement,” said Tan Sri Tan Kay Hock after GKent's shareholders meeting on Wednesday.
Hua Yang's net profit for the first quarter ended June 30, 2012 rose 43.1% to RM16.47 million from RM11.51 million a year earlier, on the back of a 58.6% rise in revenue to RM97.96 million. In a statement Wednesday, Hua Yang chief financial officer May Chan said the growth was due to steady recognition of CONSTRUCTION [] progress from the Group's projects nationwide as well as new sales from products that have been launched.
Chan said that for the financial year ending March 31, 2013, Hua Yang would double its project launches with a combined gross development value (GDV) of RM815 million from RM400 million in GDV launched in the previous financial year. She said the group had also secured RM476 million in unbilled sales as at 30 June 2012.
Tanjung Offshore's unit Gas Generators (M) Sdn Bhd has secured a purchase worth RM40 million to supply of gas generator packages. In a filing Wednesday, Tanjung said its subsidiary received the purchase order from Farab International LLC, Dubai, which involved the engineering, construction, commissioning and delivery of gas generator packages by August 2013. It said the contract was expected to contribute positively to its earnings the financial years ending Dec 31, 2012 and 2013 respectively.