Written by Joseph Chin
Wednesday, 23 December 2009 07:47
KUALA LUMPUR: The local stock market is expected to extend its gains on Wednesday, Dec 23, underpinned by the firmer close on Wall Street and steady earnings reported by infrastructure player Gamuda and Hai-O.
On Wall Street, the S&P 500 logged another 14-month high on Tuesday, Dec 22 as stocks rallied on a surge in existing home sales, which indicated more stabilization in housing and boosted optimism about the economic recovery.
The Nasdaq hit a 15-month high, buoyed by TECHNOLOGY [] bellwethers. International Business Machines Corp shot up 1 percent to US$129.93 on the NYSE after the blue-chip company scored a 10-year outsourcing deal valued at US$83 million, according to Reuters.
The Dow Jones industrial average rose 50.79 points, or 0.49 percent, to end at 10,464.93. The Standard & Poor's 500 Index added 3.97 points, or 0.36 percent, to 1,118.02. The Nasdaq Composite Index gained 15.01 points, or 0.67 percent, to close at 2,252.67.
At Bursa Malaysia, MALAYSIAN AIRLINE SYSTEM BHD [] plans to raise at least RM2.67 billion via a rights issue to part-finance its purchase of 15 wide-body Airbus aircraft, plus options for another 10 planes. The delivery will be from 2011 to 2016.
Trading in the securities of the national carrier will resume trading on Wednesday.
GAMUDA BHD [] is seeking fresh capital from its shareholders via a renounceable rights issue of up to 267.7 million warrants. The exercise, on the basis of one warrant for every eight existing shares held, may raise up to RM714.8 million.
It also reported its first quarter (1Q) net profit increased 14.5% from a year earlier, helped by higher contribution from all its business divisions. Net profit for 1Q ended Oct 31, 2009 rose to RM63.02 million from RM55.04 million, while revenue climbed 1.6% to RM623.96 million from RM613.96 million.
In quarterly terms, net profit advanced 45.6% from RM43.29 million in the preceding fourth quarter, although revenue fell 33.8% from RM942.24 million.
HAI-O ENTERPRISE BHD [] reported net profit of RM20.18 million in its second quarter ended Oct 31, a jump of 85% from RM10.89 million a year ago, as more consumers bought its health and wellness products.
The company said revenue rose 51% to RM132.37 million from RM87.29 million. Earnings per share were 24.23 sen compared with 13.38 sen. It declared dividend of 10 sen per share.
It also proposed a bonus issue of up to 16.89 million new RM1 shares on the basis of one bonus share for every five existing shares held. It also proposed a share split involving the subdivision of each Hai-O share into two 50 sen shares.
Attention would also be on Genting group. With Genting group’s Resorts World at Sentosa scheduled to open in January next year, Genting Singapore PLC (Genting Singapore) has surprised the investing public when it announced the departure of its two top management executives.
Genting Singapore PLC has appointed Tan Hee Teck, who is currently chief executive officer of Resorts World at Sentosa Pte. Ltd (RWS), as president and chief operating officer (designate) with effect from Jan 1, 2010.
It said on Tuesday, Dec 22 that its managing director Justin Tan Wah Joo had stated his intention to retire at or before the AGM which is likely to be held in April 2010.
"Tan Hee Teck’s track record in the development of the Resorts World Sentosa integrated resort and his extensive corporate, financial and operations experience will put him in good stead to assume leadership of the company and the group," it said.
Genting Singapore said Jaclyn Loy Swee Im had resigned as chief financial officer (CFO) with effect from Tuesday, Dec 22 to pursue new opportunities.