Business & Markets 2012
Written by Surin Murugiah of theedgemalaysia.com
Thursday, 13 December 2012 17:50
KUALA LUMPUR (Dec 13): The FBM KLCI may be hard pressed to extend its gains for a ninth day running on Friday, as investor sentiment could be weighed by the slip at the China and Hong Kong markets on Thursday as well as on European shares edging lower in early trade.
The FBM KLCI could also be in overbought territory after having extended its gains for more than a week, and some year-end profit taking could cap gains.
European shares edged lower and the dollar slipped against most major currencies on Thursday after the US Federal Reserve announced new measures to support the world's largest economy, according to Reuters.
The Fed said it would buy US$45 billion of Treasuries a month on top of the US$40 billion a month in mortgage-backed bonds it started buying in September. It also took the unprecedented step of indicating that interest rates would remain near zero until unemployment falls to at least 6.5% so long as inflation was contained, it said.
Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi said that a critical break of the critical 1,669 short-term support level (on Nov 2) led to a plunge towards a temporary low at 1,590.67 on Nov 28.
As such, the obvious support levels were seen at the 1,590, 1,632 and 1,649-levels, whilst the resistance levels of 1,652, 1,669 and 1,679 would cap all market rebound activities, he said in a technical report prepared for The Edge Financial Daily.
"Tactically, investors will liquidate on rallies due to the index's long-term bearish divergence signals.
"Continue to sell on any price rally as ample weekly bearish divergence signals are apparent," said Lee.
Among the stocks that could be in focus on Bursa Malaysia on Friday are TOP GLOVE CORPORATION BHD ; Axiata Group Bhd; Axis-REIT Managers Bhd; and KUB MALAYSIA BHD  (KUB).
Top Glove's net profit for the first quarter (1Q) ended Nov 31, 2012 jumped 82.9% year-on-year to RM57.49 million versus RM31.43 million a year earlier, due mainly to the continuing uptrend in demand, improved operations efficiency and lower raw materials prices.
The company said on Thursday that revenue for the quarter increased to RM584.57 million from RM554.84 million in 2011.
Axiata is acquiring Cambodian rival Latelz Co Ltd for US$155 million cash, a move which will spur the Malaysian mobile telecommunication network provider to top spot in terms of retail presence in the Indochina nation.
Axiata said on Thursday that its wholly-owned subsidiary Axiata Investments (Cambodia) Ltd had signed a sale and purchase agreement with Cyprus-based Timeturns Holdings Ltd to purchase the entire stake in Glasswool Holdings Ltd which will, in turn, own 100% of Latelz.
Axis-REIT is planning to acquire about RM350 million worth of PROPERTIES  next year, and is setting its sight on industrial properties in Iskandar Malaysia, the Klang Valley and Seberang Prai, Penang.
Chief executive officer Datuk George Stewart LaBrooy said with properties in Nusajaya valued much lower than Singapore's, there will be many international enterprises interested to have their operations based in Johor.
KUB Malaysia unit KUB Agrotech Sdn Bhd (KUB Agrotech) has signed a conditional Memorandum of Understanding (MoU) agreement to partner with Sutracom Sdn Bhd (Sutracom) for the development and operation of a RM50 million palm oil mill in Mukah, Sarawak.
The mill which will be strategically located in KUB Agro's oil palm PLANTATION s in Mukah with Fresh Fruit Brunch (FFB) capacity processing of 45 tonnes/hour. It is expected to be completed within a year and will be fully commissioned by mid 2014.