Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Wednesday, 08 May 2013 20:55
KUALA LUMPUR (May 8): Based on news flow and corporate announcements today, the stocks to watch tomorrow (May 9) may include politically-linked stocks, GLCs, glove makers, Hock Lok Siew, KKB, Perisai and Lysaght.
Politically-linked stocks and government-linked companies (GLCs) could be closely watched due to a mass political rally which is being held tonight to protest against the results of the just-concluded 13th general election. Tens of thousands of people are expected to turn up.
Police have classified the gathering, organised by opposition leader Datuk Seri Anwar Ibrahim, at Kelana Jaya Stadium as illegal. Anwar, alleging fraud in the election, has claimed that Pakatan Rakyat (PR) he led was the winner of the election as it had obtained 52% popular votes.
Ahead of the rally, stocks that had fallen after making huge gains in the last two days following BN election win included Maybank, CIMB, Tenaga, Gamuda, IJM, UEM Land, Tebrau, Axiata, Airports, Naim and SP Setia.
Selangor police chief Datuk Tun Hisan Tun Hamzah said although the organisers had obtained permission from the stadium for use of the facilities, they only informed the police on Wednesday. He said this was not in accordance with the Peaceful Assembly Act (PAA) 2012.
However, Tun Hisan said police would avoid any confrontation with the organisers or participants in the spirit of peaceful assembly.
The Barisan Nasional (BN) government had accused Anwar of "fomenting division" and planning to cause unrest.
Anwar said he has called the rally to present “evidence of widespread fraud” in Sunday's election that handed a marginal victory to the long-ruling BN coalition.
If police conduct a mass arrest of opposition leaders and organisers, it may not augur well for the image of the country and the stock market. In early September 1998, the local stock market plunged by about 40% after Anwar was sacked from the Cabinet and detained later. The episode sparked a mass reform movement that has since continued unchecked.
At press time (8.45pm), the stadium – which could pack 50,000 people, was one quarter full with more supporters braving the rain to join “tens of thousands” of people, according to a news portal.
Glove makers may grab the limelight again on news that France has identified its first case of a new strain of coronavirus emerging from the Middle East in a person recently returned from a stay in the United Arab Emirates.
According to Reuters, the Health Ministry of France said it had opened an investigation into this case and the patient had been placed in isolation.
Worldwide, there have been 30 confirmed infections with the virus, including 18 deaths, since it came to scientists' attention in September, according to the World Health Organization.
Saudi Arabia had reported 23 confirmed cases in total, Qatar two, Jordan two, Britain two and the United Arab Emirates one, according to the WHO.
Hock Lok Siew Corporation Bhd announced that that its board of directors has resolved not to appeal against its de-listing by Bursa Malaysia Securities Bhd.
“As such, Bursa Securities may take the necessary action to suspend from trading of HLSCORP's securities listed on the Main Market of Bursa Securities with effect from 9 May 2013 and de-listing procedures may be taken against the company on 13 May 2013,” the company said in its filing with Bursa.
KKB ENGINEERING BHD []'s net profit for the first quarter ended March 31, 2013, rose to RM11.38 million from RM7.71 million in the same period last year.
Revenue increased to RM64.28 million from RM52.54 million previously.
KKB attributed the higher profit mainly to the growth in revenue from the group's steel fabrication and civil CONSTRUCTION [] divisions.
The group said it will continue with its on-going expansion plan to undertake larger and more complex structural steel fabrication jobs for offshore facilities in the oil and gas sector.
"While there is still instability in the eurozone and volatile global raw material steel prices continue to pose a challenge to the group's profitability, the board remains cautiously optimistic of achieving a favourable set of results in 2013," it added.
PERISAI PETROLEUM TEKNOLOGI [] Bhd posted quite flat results in its first quarter, obtaining RM23.68 million in net profit for the first quarter ended March 31, 2013, compared to RM23.31 million in similar quarter last year.
Revenue also rose marginally to RM31.69 million from RM31.53 million in 2012, the company said.
Perisai is expected to enhance profit contribution for the financial year ending 2013 based on the existing operation and the proposed acquisition of FPSO from EOC Limited, the company said.
LYSAGHT GALVANIZED STEEL BHD []'s net profit jumped to RM11.05 million for the first quarter ended March 31, 2013, up from RM1.38 million in the same period last year.
Revenue also soared to RM22.425 million from RM11.923 million.
The company said the jump in net profit was due to higher earnings for the quarter.