Business & Markets 2012
Written by Surin Murugiah of theedgemalaysia.com
Thursday, 27 December 2012 18:38
KUALA LUMPUR (Dec 27): The FBM KLCI could continue to ride on the year end window-dressing momentum and scale to end the week on a firmer note on Friday.
The local index rose to a fresh high of 1,679.23 on Thursday, before easing slightly to close at 1,674.16.
European shares were steady and the euro edged higher on Thursday, as US lawmakers prepared to resume negotiations to avoid a fiscal crunch, while the yen hit a 21-month low on the prospect of drastic monetary easing, according to Reuters.
Returning from the Christmas holiday break, European shares opened little changed at 1,137 points, with London's FTSE 100, Paris's CAC-40 and Frankfurt's DAX between 0.1% lower and 0.4% higher, it said.
Among the stocks that could be in focus are KKB ENGINEERING BHD []; Fraser & Neave Holdings Bhd (F&N); V.S INDUSTRY BHD [] (VSI); PROTASCO BHD []; and POH HUAT RESOURCES HOLDINGS [] Bhd.
KKB Engineering secured a subcontract worth RM10.3 million for structural steelworks at the University College of TECHNOLOGY [] Sarawak & Technology Park in Sibu from Hock Peng Furniture & General Contractor Sdn Bhd.
The company said the duration of the contract was five months.
F&N announced a final single tier dividend of 23 sen and special single tier dividend of 15 sen per shared for financial year ended Sept 30, 2012, to be paid on Feb 27 next year.
VSI's net profit for the first quarter ended Oct 31, 2012 fell 33.9% to RM7.66 million from RM11.69 million a year earlier on revenue of RM327.84 million versus RM282.44 million.
The company said on Thursday its Indonesia operations had been reduced to RM25.3 million in 1Q13 from RM38.6 million previously on the back of slower demand from Japan, Australia and Europe.
Protasco has clinched a seven-year road maintenance concession from the Perak state government, a deal which will see the company further expand its road portfolio across the country.
In a statement to Bursa Malaysia on Thursday, Protasco said the contract value for the first two years comes to some RM29.6 million, and the sum is subject to review every two years during the seven-year period.
"The above-mentioned project is expected to contribute positively to the earnings and net assets of Protasco Group from the financial year ending Dec 31, 2013," said Protasco which secured the concession via its subsidiary Empayar Indera Sdn Bhd.
Meanwhile, furniture manufacturer Poh Huat saw its net profit jump to RM7.86 million in the fourth quarter ended Oct 31, 2012, compared with RM1.4 million recorded during the same quarter last year.
The marked improvement over the performance last year was driven by higher shipment of furniture from both Vietnam and Malaysian operation, according to the group in a stock exchange announcement.