Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Monday, 11 March 2013 20:00
KUALA LUMPUR (March 11): Based on news flow and announcements to Bursa Malaysia, stocks that may attract trading interest on Tuesday (March 12) could include Maybank, RHB, AFG, Sunway, property stocks, Genting, KESM and MMC.
MALAYAN BANKING BHD [], RHB CAPITAL BHD [] and ALLIANCE FINANCIAL GROUP BHD [] are the “top picks” of Credit Suisse in its latest report on Malaysian banking.
The US research house’s report, dated March 8, caused Maybank share to jump 13 sen or 1.4% to RM9.26 on trades of close to 20 million shares late today on foreign buying, according to an investment banker.
Similarly, RHB Cap surged 18 sen or 2.2% to RM8.38 on volume of 3.19 million shares.
But AFG fell 2 sen to RM4.28 on 761,300 shares.
If investors go for quick profit-taking on Tuesday, the rise of Maybank and RHB Cap shares could be capped. Otherwise, they could continue to climb with reports that there was foreign inflows today.
And if investors pick up the additional positive comment by Credit Suisse showered on AFG and Maybank as the only two local banks “which have ample capital to comply with the central bank’s regulatory requirements,” they may ponder whether they will give AFG a bet and Maybank a further lift.
Credit Suisse said the three banks have “defensive qualities that would enable them to withstand potential selling pressure in the run-up to general election”.
Sunway Bhd announced it has secured a contract worth RM452.5 million from Syarikat Prasarana Negara Bhd in relation to the Bus Rapid Transit – Sunway Line project.
The property group said its unit -- Sunway CONSTRUCTION [] Sdn Bhd -- had received an award from SPNB to design and build the guideway, depot, parking and oxidation pond.
Sunway said the project, targeted to be completed within 24 months, will contribute positively to its earnings from the financial year ending Dec 31, 2013 onwards.
Property counters, particularly the well-managed ones, may stir if investors take heed of the news that TW House International Sdn Bhd, a major Taiwanese property agent, is targeting to sell Malaysian PROPERTIES [] worth a total of RM3.5 billion to foreigners this year.
TW House International’s chairman Datuk Dr Ting Chung Cheng told the Chinese media over the weekend that the company sold 850 units of Malaysian properties worth about RM1 billion to mainly Taiwanese investors last year.
Ting, who said TW House has 400 branches in Taiwan and has links with a major mainland China property agent having 2000 branches nationwide, was quoted as saying the company was ready to promote Malaysian real estate globally, particularly to mainland Chinese and Taiwanese investors.
GENTING BHD [] has the financial means and expertise to undertake the multi-billion ringgit integrated resorts - to be called Resorts World Las Vegas, Fitch Ratings said.
"The Las Vegas market, while intensely competitive, is a destination for Asian premium and VIP players and therefore provides marketing synergies with its existing operations in the US as well as southeast Asia," it said.
Genting Bhd said on March 4 it is planning to build an integrated gaming resort in Las Vegas. It had proposed to buy 87 acres of freehold land in Las Vegas for US$350million.
KESM INDUSTRIES BHD [] posted a net loss of RM889,000 for its second quarter ended Jan 31, 2013, compared to the RM3.1 million net profit it posted in the previous corresponding quarter, due to an increase in costs and expenditure.
The electronic company said employee benefits had risen by 12% mainly due to more hires of contract workers, along with adjustments to wage rates in China and Malaysia. Other expenses increased by RM1.4 million or 11%.
For its quarterly revenue, the company saw a slight increase to RM 58.7 million, from RM58.3 last year.
For its cumulative results in the first half of the financial year, revenue increased by 13% to RM122.9 million from RM108.6 million, but net profit shrank to RM394,000, from RM4.9 million it recorded at the same time in 2012.
MMC CORPORATION BHD [] shares may get a boost if a glowing report by HwangDBS Vickers Research on the company attracts investor attention.
HwangDBS said the rerating of Iskandar-linked companies such as like UEM Land, Tebrau, Sunway and even Crescendo should lift MMC’s share price, with 68% of its SOP from Iskandar.
The research house noted that the positives in MMC include the company starting to unlock its value with the sale of its 400 acres of Senai land to a developer, listing of Malakoff and possible listing of Johor Port.
There may be an award of a substantial contract soon to MMC, HwangDBS disclosed in its research note.
HwangDBS has a target price of RM3.60 for MMC, which closed flat at RM2.51 today.