Written by Joseph Chin
Saturday, 01 May 2010 08:26
KUALA LUMPUR: Markets are expected to face a gruelling week ahead on Monday, May 3 after US stocks tumbled on Friday to close out the worst week since January and concerns over sovereign debt defaults in Greece, Spain and Portugal.
The Dow Jones industrial average fell 158.71 points, or 1.42%, to 11,008.61. The Standard & Poor's 500 Index lost 20.09 points, or 1.66 percent, to 1,186.69. The Nasdaq Composite Index dropped 50.73 points, or 2.02 percent, to 2,461.19.
Reuters reported news of a criminal probe into Goldman Sachs unnerved investors already anxious about the prospects for heavy regulation from Washington.
At Bursa Malaysia, the FBM KLCI is up 26 points in April to end at 1,346.38 while the market capitalisation rose RM18 billion to RM1.079 trillion. Year-to-date, the 30 stock index is up 5.78%.
Among key regional markets, the Nikkei 225 is up 4.48% YTD, Singapore’s Straits Times Index advanced 2.85% but the Hang Seng Index is down 3.49% and Shanghai’s Composite Index slipped 12.4%. Jakarta’s Composite Index is the best performer, chalking up 17.24%.
For the week ahead, stocks to watch include Hong Leong Financial Group (HLFG), Atis Corp, SUNWAY CITY BHD [] and Wawasan TKH Holdings. Others include DAMANSARA REALTY BHD [], Ho Hup CONSTRUCTION [] Co. Bhd and KNM Bhd
HLFG’s shareholders could see an attractive return on investment if the merger between Hong Leong Bank and EON Capital takes place, according to The Edge weekly in its latest issue.
The weekly also reported Atis Corp's recent proposals to up its stake in MUTIARA GOODYEAR DEVELOPMENT [] will not only allow it to control the latter, but also cement the position of Hamidon Abdullah in the property company.
SunCity has formally collaborated with Sino-Singapore Tianjin Eco-City Investment and Development Co., Ltd (SSTEC) to develop 41 hectares of the 3,000-hectare Tianjin Eco-City in Tianjin, China with a gross development value of RM5 billion.
The project will be developed in three stages over five years, with the initial work start earliest in March 2011 and completion by mid 2015. The eco-city project is expected to contribute to its earnings only in 2012.
Ho Hup Construction Co. Bhd faces trading suspension on May 10 after it failed to provide the audited financial statement for the financial year ended Dec 31, 2009 (AFS FY09) by the April 30 deadline.
Under the Main Market Listing Requirements of Bursa Malaysia Securities Bhd, it must announce to Bursa Securities its AFS FY09 within four months from the closure of the financial year, that is on or before April 30.
Meanwhile, external auditors have raised their concerns about their inability to complete the auditing of six companies. They include Nam Fatt Corp Bhd and WAWASAN TKH HOLDINGS BHD [].
In Wawasan TKH, the independent auditors BDO said on Friday it could not determine the effect of impairment adjustments, if any, on the carrying amounts of the property, plant and equipment of the disposable food-wares unit and goodwill of the group.
Wawasan TKH had earlier informed BDO that no impairment was required for property, plant and equipment of the unit with a carrying amount of RM83.2 million and goodwill of nhe group arising from the acquisition of the unit with a carrying amount of RM12.91 million.
“Key assumptions used by the management to determine recoverable amounts of these assets respectively include future cash flows covering a period of 10 years, sales growth rates of 6% and 19% for the financial years ending Dec 31, 2010 and 2011 respectively and gross profit margins ranging from 11% to 18% for the subsequent financial years,” BDO said.
In KNM GROUP BHD [], the board said the audited net profit for the financial year ended Dec 31, 2009 has been revised to RM260.55 million. The group, had in its fourth quarter announcement on Feb 25, stated the unaudited net profit for FY09 was RM170.74 million. This gave rise to a deviation of RM89.81 million or 52.6%.
This arose from the adjustments of RM94.6 million arising from the recognition of tax incentive granted for the Borsig acquisition.
Subscribe to:
Post Comments (Atom)