Written by Lam Jian Wyn
Wednesday, 05 May 2010 06:35
KUALA LUMPUR: Market sentiment is expected to be cautious on Wednesday, May 5 with some selling pressure expected in the broader market after the overnight slide on Wall Street.
Investors dumped US stocks on Tuesday in Wall Street's worst session in three months on the fear that even with a bailout for Greece, Europe's debt crisis could spread to other weak euro zone countries, according to Reuters.
The Dow Jones industrial average lost 225.06 points, or 2.02%, to 10,926.77. The Standard & Poor's 500 Index fell 28.66 points, or 2.38%, to 1,173.60. The Nasdaq Composite Index dropped 74.49 points, or 2.98%, to 2,424.25.
Key regional markets are also not expected to be spared the selling pressure from Wall Street when they reopen on Wednesday.
At Bursa Malaysia, despite the overall bearish external news, stocks to watch include GENTING BHD [], DIGI.COM BHD [], CREST BUILDER HOLDINGS BHD [] and TRIPLC BHD [].
Genting Bhd's share price skidded 21 sen or 2.9% to close at RM6.90 on May 4, its lowest since April 7, with 6.43 million shares done, after brokerage and investment services firm CLSA Asia Pacific Markets cut its fair value on the gaming group from RM9.30 to RM8.60 while maintaining its buy call.
Despite competition heating up and increasing cost of attracting subscribers, mobile phone service providers are set to continue to see growth in earnings and to declare splendid dividend payouts if the results of DiGi.Com are anything to go by.
DiGi.Com net profit for the first quarter ended March 31, 2010 rose to RM278.26 million from RM275.44 million a year ago, on the back of a 6% increase in revenue to RM1.3 billion.
K & N KENANGA HOLDINGS BHD [] group director Tengku Zafrul Tengku Abdul Aziz has resigned from his present position to take on the role of CEO at Maybank Investment Bank Bhd (Maybank IB) subject to Bank Negara Malaysia's approval, sources told The Edge FinancialDaily.
Crest Builder Holdings Bhd's joint venture company has secured a RM284.89 million 23-year concession agreement with the Ministry of Education and Universiti Teknoloi Mara (UiTM) to build and maintain a new UiTM campus in Tapah, Perak.
TRIplc Bhd unit TRIplc Ventures Sdn Bhd has entered into a concession agreement with the government and Universiti Teknologi MARA (UiTM) to design, build and maintain academic facilities on a 45.71 acre plot in Jeram, Kuala Selangor.
TRIplc said the concession was for 23 years, consisting of three years for CONSTRUCTION [] works and 20 years for maintenance works.
Asas Serba Sdn Bhd's RM50 billion offer to take over all tolled roads in the country with a promised 20% toll rate cut while maintaining the same profit margin is unlikely to materialise, said analysts.
ASTRAL SUPREME BHD [] has proposed a reduction of RM36 million from its issued and paid-up share capital of RM45 million comprising 45 million ordinary shares by the cancellation of 80 sen from the par value of each existing share of RM1.00 each.
Indonesia's biggest cement producer, PT Semen Gresik, said it is in talks to acquire a Malaysia cement maker this year and has set aside more than 3.5 trillion rupiah (US$388 million) for the deal.