Stocks To Watch Gadang, Puncak Niaga, Brahim's, Lafarge, KLK


Business & Markets 2014
Written by Chong Jin Hun of theedgemalaysia.com   
Thursday, 12 June 2014 18:29

KUALA LUMPUR (June 12): Based on Bursa Malaysia announcements and news flow today, stocks to watch tomorrow (June 13) may include the following companies:

Gadang Holdings Bhd has clinched a RM350 million project from Petroliam Nasional Bhd (Petronas) to undertake site-preparation work for the Refinery and Petrochemical Integrated Development (RAPID) in Johor.

Gadang announced its wholly-owned subsidiary Gadang Engineering (M) Sdn Bhd had accepted the letter of award (LOA) from Petronas Refinery and Petrochemical Corp Sdn Bhd for package 18C of the RAPID project.

Puncak Niaga Holdings Bhd secured a RM53.4 million Sarawak rural water supply project from the government.

Under the contract, Puncak Niaga will be responsible for the supply, jointing and laying of delivery and pumping pipelines, construction of three water reservoirs and three booster stations, besides the supply and installation of mechanical and electrical equipment.

In-flight catering service provider Brahim’s Holdings Bhd may be closely watched as sentiment surrounding Malaysian Airline System Bhd (MAS) improves.

A senior remisier said Brahim’s shares rose today after MAS' major shareholder Khazanah Nasional Bhd reafffirmed its commitment to the airline, while evaluating several options for the national carrier.

“I think people are looking at the positive side of things, as Khazanah said it has plans to turn around MAS. The share price of Brahim’s is rising due to this,” he said.

Lafarge Malaysia Bhd will trade ex-dividend tomorrow. The cement manufacturer plans to pay its first interim single-tier dividend of nine sen a share for financial year ending December 31, 2014.

The payment date falls on July 16 this year.

Meanwhile, the spotlight may also fall on oil palm plantation companies like Kuala Lumpur Kepong Bhd (KLK) and IOI Corp Bhd as crude palm oil (CPO) prices fell. This is in anticipation of larger world supply of rival crop soybean.

A larger soybean supply will lead to lower prices of soyoil, hence, lower demand for palm oil. CPO futures have fallen to about RM2,400 a tonne today from RM2,837 in March this year.

Reuters reported that Malaysian palm oil futures extended their losing streak into a sixth day on Thursday, tracking weakness in Chinese palm and soy markets, with worries of a bigger global oilseeds supply keeping prices at near eight-month lows.

The United States is a month closer to bumper supplies of soybeans, a major field crop, the U.S. Department of Agriculture said on Wednesday in a second look at the 2014/15 U.S. and world grain outlook.