Written by Surin Murugiah of theedgemalaysia.com
Thursday, 17 March 2011 07:00
Bookmark and Share
KUALA LUMPUR: Sentiment at the regional markets — which received a boost from the strong rebound of the Nikkei 225 on Wednesday, March 16 — will likely be tepid on Thursday, as external factors play a greater influence now on the markets rather than fundamentals.
The impact from Japan's earthquake on the global economy, as well as the threats of further escalation of tensions in the Middle East could have a telling affect on the world financial markets.
Japan's devastating earthquake and deepening nuclear crisis could result in losses of up to US$200 billion (RM612 billion) for the world's third largest economy, but the global impact remains hard to gauge five days after a massive tsunami battered the northeast coast, according to Reuters.
European markets fell on Wednesday after initially trading in positive territory as embattled Libyan leader Muammar Ghaddafi stepped up on the offensive on rebels, while in Bahrain police began a crackdown on pro-democracy protesters, two days after Saudi Arabia sent in 1,000 troops.
The FBM KLCI snapped its four-day losing streak on Wednesday as the Nikkei led the rebound across key regional markets as investors snapped up battered stocks. Among the stocks to watch today are Top Glove Corp Bhd, SEG INTERNATIONAL BHD [] (SEGi), PHARMANIAGA BHD [], Digistar Corp Bhd and timber-related counters as demand could rise in the wake of the earthquake in Japan.
Top Glove's net profit for the second quarter ended Feb 28, 2011 fell 63.9% to RM25.41 million from RM70.53 million a year earlier, due mainly to persistently high latex prices and the continued weakening of the US dollar coupled with the time lag in passing on the higher costs to its customers. Revenue for the period fell to RM485.21 million from RM509.89 million last year.
SEGi has been appointed by the government to lead the development of integrated early child care education (ECCE) in Malaysia under the education National Key Economic Area (NKEA). With the appointment, SEGi will lead the initiative in training and developing high quality early childhood and childcare practitioners.
Pharmaniaga's unit Pharmaniaga Logistics Sdn Bhd has inked a 10 year concession agreement with the federal government in relation to the privatisation of the medical laboratory and storage facility. It said the concession period was from Dec 1, 2009 until Nov 30, 2019.
Digistar's unit Digistar Holdings Sdn Bhd has secured new orders worth RM25 million from its existing and new clients for the supply and integration of various audio-visual system, security system, extra-low-voltage system, hospital communication system and broadcasting systems. Digistar said that the orders would contribute positively to its earnings for the financial years ending Sept 30, 2011 and 2012.