Stocks To Watch Index stocks, Petron, Kumpulan Hartanah, Hibiscus Petroleum and construction stocks

Business & Markets 2013
Written by Ho Wah Foon of   
Thursday, 14 February 2013 19:06

KUALA LUMPUR (Feb 14): Based on news flow and company announcements today, the stocks to watch tomorrow (Feb 15) may include index-linked stocks, Petron, Kumpulan Hartanah,  Hibiscus Petroleum and CONSTRUCTION [] stocks.

The public was given a hint today that the general election will be called very soon by the Prime Minister, and if this remark causes jitters, index-linked stocks with large foreign holdings may be dumped.

In recent weeks, there were three election jitters that had caused the market to plunge suddenly.

This afternoon, Datuk Seri Najib Tun Razak said in Sabah the dissolution of Parliament will be "very soon, very soon,” but he added he is on the ground explaining the policies and direction of the BN (Barisan Nasional) led by him.

"We want the people to understand that a vote for BN is a vote for the country's transformation agenda and a vote for peace and stability for a brighter future," he told reporters after attending the people's gathering at Padang Pekan.

On the choice of BN candidates in the 13th general election, Najib said the BN had almost finished selecting candidates. "We have to do background and security verifications and also check on any reports from the Malaysian Anti-Corruption Commission and others before we finalise the list," he added.

Petron Malaysia Refining & Marketing Bhd posted a net profit of RM5.4 million, an 84% plunge from last year’s RM34.6 million for the fourth quarter ended Dec 31, 2013, due to depressed margins caused by global oil volatility.

But the group reported higher revenue of RM2.98 billion, an 8% increase compared to RM2.75 billion recorded for similar quarter a year ago.

For the full year in 2012, the group posted net profit of RM98.2 million, a 36% decrease from RM153.4 million a year ago. However the group registered higher revenue of RM11.5 billion from last year’s RM11.3billion.

On its outlook, Petron said the company is “optimistic about its business prospects”. The company, formerly called Esso, is expanding its petrol service stations.

Hibiscus Petroleum Bhd, via a subsidiary, has been pre-qualified by the Norwegian Ministry of Petroleum and Energy to operate as an oil and gas player in Norway.

Hibiscus announced that through this pre-qualification awarded to Lime Petroleum Norway AS (Lime Norway), Lime Norway will be able to directly assume participating interests in partner-operated licenses in the Norwegian Continental Shelf (NCS).

“Lime, which is owned by Hibiscus Petroleum, Schroder & Co Banque S.A and Rex Oil & Gas Ltd (Rex), had on May 2, 2012, signed an agreement to acquire 50% of North Energy ASA’s interests in at least four concessions in the NCS. This prequalification is a key step towards completing these transactions,” Hibiscus said in a statement.

Lime Norway’s risked capital outlay is reduced as under the Norwegian Petroleum Tax Act, “78% of exploration expenditure incurred is reimbursed at the end of each year, irrespective of whether production is achieved”.

Kumpulan Hartanah Selangor share may continue to climb on Friday after Kumpulan Darul Ehsan Bhd (KDEB) made an offer to buy out Kumpulan Perangsan Selangor Bhd’s (KPSB) stake in the former at 76 sen per share.

KHSB soared 30.5 sen or 80% to 68.5 sen at market close today (Feb 14).

In a noon Bursa Malaysia filing today, KPSB said it received a letter from KDEB offering to buy out its 56.57% stake in KHSB for RM193.46 million or 76 sen per share.

Construction stocks may be given a boost after the Construction Industry Development Board (CIDB) said it expects the industry to secure about RM110 billion worth of projects this year.

CIDB saw RM120 billion worth of projects in 2012, way beyond its initial projection of RM95 billion.