Written by Yong Yen Nie
Wednesday, 16 December 2009 00:00
KUALA LUMPUR: The FBM KLCI closed 5.36 points higher to 1,270.81 points, led by blue-chip stocks that closed higher yesterday.
SIME DARBY BHD [] increased three sen to RM8.98, while MALAYAN BANKING BHD [] closed 13 sen higher to RM6.90. Maxis Bhd closed RM5.40, two sen higher, while CIMB Group Holdings Bhd increased 10 sen to RM13.10. However, dealers expect lacklustre trading in the next two weeks as investors are expected to wind down their trading activities for the year-end.
Among the stocks to watch are Top Glove, TENAGA NASIONAL BHD [] (TNB) and LCL Corp.
Four brokers issued buy or outperform calls on Top Glove yesterday and one broker issued a buy call on Dec 14, underpinned by expectations of strong financial results for its 1QFY10. OSK Research, one of the brokers who issued a report yesterday said "top notch" numbers were expected.
"Top Glove expects to announce its 1QFY10 results on Dec 16, which we gather would show a quarter-on-quarter improvement, buoyed by strong demand for rubber gloves, higher glove selling prices, higher utilisation of its plants, its success in passing on costs and ongoing cost cutting and production efficiency."
TNB president and CEO Datuk Seri Che Khalib Mohamad Noh said it is in the midst of finalising the three tenders it received for the second phase of the CONSTRUCTION [] of the Ulu Terengganu hydropower plant. TNB is expected to award the contract by February next year.
He said the three parties that submitted their bids were Loh & Loh Corp Bhd with Sinohydro Corp, Italian company Salini Construction as well as GAMUDA BHD [] together with a Chinese company.
LCL Corp continues to be in the spotlight after it received a public reprimand from Bursa Malaysia for delaying its submission of financial statements.
In a statement yesterday, Bursa Malaysia said LCL had breached listing requirements for failing to submit the company’s annual audited accounts for the financial year ended December 31, 2008 on or before April 30, 2009.
Two days ago, LCL founder Datuk Low Chin Meng's stake of 16 million was completely sold down by banker CIMB Group Nominees (Tempatan) Sdn Bhd, to partially settle the overdue amounts of a banking facility granted to the company by CIMB group.
It was reported that LCL has to date defaulted on RM72 million in loans from Affin Bank and Bank Islam Malaysia. Net debt as at Sept 30 stood at RM376 million with net gearing at 4.7 times.