Stocks to watch Blue chips, Quality Concrete, Selangor Properties, glove makers

Hoot Super MAX if H5N1 spread...

Business & Markets 2012
Written by Surin Murugiah of   
Saturday, 29 December 2012 14:04
KUALA LUMPUR (Dec 29): The FBM KCLI could extend its gains and end the final trading day of 2012 on a high note, continuing its momentum from the previous week during which it scaled to a new record high of 1,686.70.

But post New Year much would depend on the outcome of the negotiations over the US “fiscal cliff”, which must be resolved by Dec 31.

The local market could consolidate and taper down ahead of the Chinese New Year (CNY) on the back of a shorter trading month in January with public holidays and extended weekends, as well as the traditional quieter period ahead of the CNY when most punters leave the capital for family reunions.

Further into 2013, there is another ticking time bomb, namely the US debt ceiling.

If Washington fails to reach a deal to increase the nation's debt ceiling because that raises the threat of a default, another credit downgrade and a panic in the financial markets, according to Reuters.

Market strategists say that while falling off the cliff for any lengthy period - which would lead to automatic tax hikes and stiff cuts in government spending - would badly hurt both consumer and business confidence, it would take some time for the U.S. economy to slide into recession. In the meantime, there would be plenty of chances for lawmakers to make amends by reversing some of the effects, it said.

Among the stocks that could in focus next week are defensive blue chips, QUALITY CONCRETE HOLDINGS BHD [] (Quality), Selangor PROPERTIES [] Bhd (SelProp) and glove manufacturers.

Quality Concrete Holdings posted a net loss of RM1.25 million for the third quarter ending Oct 31, 2012 (3Q12), compared to a net profit of RM1.79 million for the similar quarter in the previous year.

In a filing to Bursa on Friday, the CONSTRUCTION [] and property group said it netted revenue of RM55.9 million, up from RM49.8 million in the corresponding quarter in the previous year.

SELANGOR PROPERTIES BHD []'s (SelProp) net profit for the fourth quarter of the financial year ended Oct 31, 2012 (4QFY2012) fell by RM24.7 million or 56.1% to RM19.3 million, due to losses from its property development segment, investment holdings and Australian operations.

Revenue during the quarter under review was at RM55.9 million, which is RM8.5 million or 13.3% lower from the RM64.4 million recorded in the corresponding quarter last year, due to delay in its property development launches.

Meanwhile, glove makers could see some interest after the Jakarta Post on Dec 27 reported that a research and laboratory test conducted by the Veterinary Center (BBVet) Yogyakarta had found that the avian flu that killed thousands of ducks in Yogyakarta, Central Java and East Java was a new strain of the H5N1 virus.

“The new strain, the expert said, was identified as H5N1 clade 2.3, which reportedly only attacks ducks. It is described as more malignant than H5N1 clade 2.1, which had been killing chickens. The initial attack of this new virus in three provinces was noted in September 2012,” said the Jakarta Post.

So far, 113,700 ducks have reportedly died because of the virus in the three provinces — Yogyakarta, Central Java and East Java — over the last four months. Some 64,000 were in Central Java, 45,000 in East Java and 4,700 in Yogyakarta, it said.