Written by Darlene Liew
Tuesday, 04 May 2010 10:42
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KUALA LUMPUR: Blue chips may trade higher on Tuesday, May 4, with semiconductor-related counters in focus after worldwide semicon sales in March rose on-month and also on-year.
Unisem, MPI and Eng Teknologi will be among the counters which could see trading interest. The Industry Association (SIA) today reported that worldwide semiconductor sales in March were US$23.1 billion, up 4.6% on-month and surging 58.3% on-year.
On Wall Street, shares rose on Monday after U.S. consumer spending and factory activity data strengthened belief in the economic recovery and revived European stocks that were capped by skepticism over a Greek debt bailout and the falling euro, according to Reuters.
The Dow Jones industrial average added 143.22 points, or 1.3 percent, to 11,151.83. The Standard & Poor's 500 Index rose 15.57 points, or 1.31 percent, to 1,202.26 for its best day in two months. The Nasdaq Composite Index gained 37.55 points, or 1.53 percent, to 2,498.74.
At Bursa Malaysia, stocks to watch include SCOMI MARINE BHD [], SOUTHERN STEEL BHD [], LATEXX PARTNERS BHD [] and SUNWAY HOLDINGS BHD []
Scomi Marine's unit Scomi Marine Services Pte Ltd has completed the disposal of its 29.07% stake comprising 205 million shares in CH Offshore Ltd to Falcon Energy Group Ltd subsidiary Energian Pte Ltd for S$143.5 million cash (RM348.7 million).
The proceeds from the disposal would be used to reduce its gearing ratio to 0.2 times from 0.6 times, which would enhance its financial flexibility and enable it to take advantage of investment opportunities that provided better returns and boost its operating capabilities. The disposal will result in a net gain of RM63.6 million for the current financial year.
Southern Steel Bhd (SSteel) posted a net profit of RM34.48 million in its first quarter ended March 31, 2010, versus a net loss of RM65.48 million a year ago on the back of a higher revenue in line with the economic recovery.
Revenue surged 59.74% to RM628.74 million from RM393.6 million, while pre-tax profit totaled RM37.1 million versus a loss of RM78.5 million a year earlier. Basic earnings per share stood at 8.2 sen, versus a loss per share of 15.6 sen previously.
Latexx Partners Bhd more than doubled its net profit to RM20.72 million for the first quarter ended March 31, 2010 (1QFY10) from RM9.14 million a year earlier on the back of capacity expansion, aggressive marketing strategy and overall cost savings.
Revenue surged 79.4% to RM126.17 million from RM70.32 million, while earnings per share rose to 10.52 sen from 4.7 sen. It declared a tax exempt interim dividend of 2.5 sen per share.
Sunway Holdings Bhd’s unit Sunway Marketing Sdn Bhd, has proposed to set up a joint venture company with Opus Developers and Builders Pte Ltd called Sunway Opus International Trading Pte Ltd to undertake the importing, marketing and sale of architectural and finishing products.
The products include sanitary ware and fittings, ceramic tiles, marble, pipes, iron-mongering and hardware products, paint and home furniture.
The proposed JV would enable Sunway Marketing to expand its trading business to India and gain local knowledge of the Indian CONSTRUCTION [] and property markets through a strategic partnership with Opus.
YINSON HOLDINGS BHD [] unit Yinson Tulip Ltd has landed a service contract from PetroVietnam Technical Service Corp (PTSC) for the provision of offshore support vessel for the purpose of assisting and servicing platforms through performing supply runs for supplies from the supply base to drilling units, standby duties, emergency and evacuation and oil recovery.
Asas Serba Sdn Bhd's proposed dividend bond to finance the RM50 billion takeover of the country's 22 toll operators could potentially draw an annual yield of 7%, apart from a share of profit to holders, said its director Ibrahim Bidin.
MTD CAPITAL BHD [] has finally resolved the legal dispute over the South Luzon Expressway (SLEX) in the Philippines and has taken over the maintenance and operations, including toll collection for the project as of last Sunday, sources said.
Golden Land Bhd, formerly Tanah Emas Corp Bhd, has been threatened with a legal suit by the shareholders of Fabulous PLANTATION []s Sdn Bhd (FPSB) following the company's failure to complete the acquisition of the entire equity stake in FPSB.