Written by Yong Min Wei
Thursday, 15 October 2009 07:43
KUALA LUMPUR: Regional markets are expected to extend their gains on Thursday, Oct 15, underpinned by the strong overnight close on Wall Street where the Dow Jones Industrial Average (DJIA) surged past the crucial 10,000 level.
The strong close on Wall Street, with the DJIA above 10,000 for the first time in a year, was driven by surprisingly robust company results and better-than-expected retail sales.
At Bursa Malaysia, the 30-stock FBM KLCI hit a 16-month high, fuelled by gains in banks and key blue chips while the broader market also displayed positive market sentiment.
However, investors' exuberance could be held in check by the crucial MCA Central Committee meeting today which may see the resignation of its party president and pave the way for drastic changes to its leadership.
Any change to the top leadership of MCA may also trigger a minor cabinet reshuffle as the Chinese-based party has four Cabinet ministers at the moment.
Stocks to watch include banks, media including Media Prima and NSTP, HWGB and Kulim.
Public Bank is scheduled to release its results probably today. RHB Research continues to like the stock for its above-industry growth and asset quality, especially when investors’ focus is now firmly on CY10 earnings prospects.
"Other factors that contributed to our positive stance on the potential share price performance are relatively low foreign shareholding, high weighting in the FBM KLCI, premium valuation gap that has narrowed and capacity to remain active in post FY09 capital management," it said.
RHB Research maintained an Outperform on Public Bank with a fair value of RM12.57 based on 16 times (sector and market benchmark) FY10 EPS.
Media companies Media Prima and NSTP, which rose yesterday, could continue to attract attention on expectations of the privatisation of NSTP by Media Prima. Media Prima was also reported to be disposing of its loss-making Philippines operations.
Ho Wah Genting has proposed a five-to-one capital reduction via the cancellation of 80 sen par value of every existing share of RM1 each, towards offsetting accumulated losses which amounted to RM265.17 million as at Dec 31, 2008.
Kulim saw the entry of Norwegian fund management company Skagen AS as the second largest shareholder in Kulim (Malaysia) Bhd with a 5.3% stake.
Meanwhile, Khazanah Nasional Bhd disposed of 3.61 million shares in PLUS EXPRESSWAYS BHD [] on Oct 5 as part of its programme to reduce stakes in government-linked companies.
Top Glove, the world's largest rubber glove manufacturer by output, may build more factories abroad to cater to the rising global demand, adding on to the company's existing capacity expansion in Malaysia.
Meanwhile, Telekom Malaysia and TM Net Sdn Bhd have been served with an amended statement claim by Network Guidance Sdn Bhd which is claiming RM200 million aggravate damages and another RM200 million for exemplary damages for a breach in a purported joint venture agreement.
As for Zhulian, its net profit net profit dipped 1.2% to RM23.8 million in the third quarter ended Aug 31, 2009 but the company declared a third interim dividend of 3 sen per share to bring the total dividend for the year to 9 sen to date. However, its margins remain healthy, with net profit at more than 20% of revenue.
MAGNA PRIMA BHD []'s (MPB) unit Crossborder Team (M) Sdn Bhd is buying a piece of leasehold land in Selayang, Selangor for RM16.5 million. It intends to develop the residential land with an estimated gross development value of RM70 million.
Thursday, 15 October 2009 07:43
KUALA LUMPUR: Regional markets are expected to extend their gains on Thursday, Oct 15, underpinned by the strong overnight close on Wall Street where the Dow Jones Industrial Average (DJIA) surged past the crucial 10,000 level.
The strong close on Wall Street, with the DJIA above 10,000 for the first time in a year, was driven by surprisingly robust company results and better-than-expected retail sales.
At Bursa Malaysia, the 30-stock FBM KLCI hit a 16-month high, fuelled by gains in banks and key blue chips while the broader market also displayed positive market sentiment.
However, investors' exuberance could be held in check by the crucial MCA Central Committee meeting today which may see the resignation of its party president and pave the way for drastic changes to its leadership.
Any change to the top leadership of MCA may also trigger a minor cabinet reshuffle as the Chinese-based party has four Cabinet ministers at the moment.
Stocks to watch include banks, media including Media Prima and NSTP, HWGB and Kulim.
Public Bank is scheduled to release its results probably today. RHB Research continues to like the stock for its above-industry growth and asset quality, especially when investors’ focus is now firmly on CY10 earnings prospects.
"Other factors that contributed to our positive stance on the potential share price performance are relatively low foreign shareholding, high weighting in the FBM KLCI, premium valuation gap that has narrowed and capacity to remain active in post FY09 capital management," it said.
RHB Research maintained an Outperform on Public Bank with a fair value of RM12.57 based on 16 times (sector and market benchmark) FY10 EPS.
Media companies Media Prima and NSTP, which rose yesterday, could continue to attract attention on expectations of the privatisation of NSTP by Media Prima. Media Prima was also reported to be disposing of its loss-making Philippines operations.
Ho Wah Genting has proposed a five-to-one capital reduction via the cancellation of 80 sen par value of every existing share of RM1 each, towards offsetting accumulated losses which amounted to RM265.17 million as at Dec 31, 2008.
Kulim saw the entry of Norwegian fund management company Skagen AS as the second largest shareholder in Kulim (Malaysia) Bhd with a 5.3% stake.
Meanwhile, Khazanah Nasional Bhd disposed of 3.61 million shares in PLUS EXPRESSWAYS BHD [] on Oct 5 as part of its programme to reduce stakes in government-linked companies.
Top Glove, the world's largest rubber glove manufacturer by output, may build more factories abroad to cater to the rising global demand, adding on to the company's existing capacity expansion in Malaysia.
Meanwhile, Telekom Malaysia and TM Net Sdn Bhd have been served with an amended statement claim by Network Guidance Sdn Bhd which is claiming RM200 million aggravate damages and another RM200 million for exemplary damages for a breach in a purported joint venture agreement.
As for Zhulian, its net profit net profit dipped 1.2% to RM23.8 million in the third quarter ended Aug 31, 2009 but the company declared a third interim dividend of 3 sen per share to bring the total dividend for the year to 9 sen to date. However, its margins remain healthy, with net profit at more than 20% of revenue.
MAGNA PRIMA BHD []'s (MPB) unit Crossborder Team (M) Sdn Bhd is buying a piece of leasehold land in Selayang, Selangor for RM16.5 million. It intends to develop the residential land with an estimated gross development value of RM70 million.