Stocks To Watch Protasco, Global Carriers, Westports, Country View, rubber glove manufacturers


Business & Markets 2014
Written by Chong Jin Hun of theedgemalaysia.com   
Tuesday, 21 January 2014 18:45

KUALA LUMPUR (Jan 21): Based on Bursa Malaysia announcements and news flow today, stocks to watch tomorrow (January 22) may include the following companies :

Protasco Bhd has secured two property projects with an estimated combined value of RM88.1 from Koperasi Pembangunan Hartanah Putrajaya Bhd.

The projects involve the construction of 907 affordable single-storey terrace houses in Manjung, Perak, and 237 similar units in Jelebu, Negeri Sembilan.

Practice Note 17 (PN17) shipping firm Global Carriers Bhd may attract interest after Amcorp Group Bhd ceased to be a major shareholder in the firm.

This follows the sale of 32.41 million shares or a 19% stake in Global Carriers by Amcorp. The exit of Amcorp prompts expectation of a new major shareholder in Global Carriers which is the midst of a regularisation plan to rejuvenate its financials.

Westports Holdings Bhd is mulling a container-tariff hike due to higher cost. The move requires the Port Klang Authority's (PKA) approval, Westports CEO Ruben Emir Gnanalingam said.

“We have always wanted to raise tariff. For the last 12 years, we have not increased container prices. Thus, we have not even adjusted our cost structure to absorb the fuel price hike in 2005/2006.

"Our last increase was in 2003,” said Gnanalingam. He said the port operator has not submitted any application to PKA .

Gnanalingam declined to specify when Westports plans to do so.

Country View Bhd reported a net profit of RM22.1 million for its fourth quarter ended November 30, 2013, up 65% from RM13.4 million a year earlier.

Revenue rose 40% to RM79.1 million from RM56.6 million. The group said the rise in revenue and profit was mainly derived from its property development division.

Cumulative full-year net profit increased to RM77.8 million from RM38 million a year earlier while revenue rose to RM272.9 million from RM191.2 million.

Country View plans to pay a dividend of seven sen a share for the quarter in review. This brings total dividends for the year to 27 sen a share.

Meanwhile, shares of rubber glove manufacturers like Top Glove Corp Bhd and Supermax Corp Bhd may be worth watching.

This comes amid increasing bird flu cases in China, and the weakening ringgit versus the US dollar.

A weaker ringgit bodes well for export-based rubber glove manufacturers as their US dollar-denominated earnings translate into higher income when converted into ringgit.

At 4.57pm today, the ringgit was traded at 3.3255 versus the US dollar. This compares to 2.9570 on May 7, 2013.

Bird flu cases in China have made headlines. Reuters, quoting the  World Health Organisation, reported that another 23 people in China have been infected with the H7N9 strain of bird flu in recent days, adding to at least 24 new cases last week and confirming a fresh surge in the virus.

With many people travelling within the country for the upcoming Chinese New Year celebrations on Jan. 31, the United Nations health agency has reminded people to be aware of the risk that flu viruses might spread more widely.