KUALA LUMPUR: The current uncertainties in the US and Europe are expected to continue to impact market sentiment regionally and in Malaysia, where the FBM KLCI is down 4% month-on-month.
OSK Research director Chris Eng said investors should continue to be defensive for now.
“Our 2012 KLCI fair value remains at 1,466,” he said adding that recent earnings are generally poor though the research house is still compiling details.
For November, stock market data shows the FBM KLCI is down 4% or 60.34 points from 1,491.89 on Oct 31 after it closed at 1,431.55 on Nov 25.
Bursa Malaysia’s market capitalisation was reduced by RM38 billion to RM1.23 trillion from RM1.268 trillion during the period.
Among the stocks with recent corporate news are Guinness Anchor Bhd (GAB), Media Chinese International Ltd (MCIL), Sime Darby Bhd, Malaysian Resources Corp Bhd (MRCB), IJM Corp Bhd and Kulim (M) Bhd.
GAB plans to issue up to RM500 million in debt notes which will provide it with an alternative source of financing and enable it to effectively plan and manage its funding costs and requirements, it added.
The Edge weekly reports that MCIL, a newspaper publisher with the most Chinese titles in the world, has jumped onto the non-print media bandwagon and is scouting for opportunities in TV and radio.
Stocks with recent corporate results are Sime Darby, MRCB, IJM Corp and Kulim.
Sime’s first quarter net profit jumped 63.9% to RM1.07 billion from RM654.74 million a year ago, boosted by stronger results for the plantations and industrial divisions.
MRCB’s net profit for 3QFY11 ended Sept 30 jumped 191% to RM10.72 million from RM3.68 million a year ago, due mainly to higher contribution from its revenue recognition of ongoing and encouraging strata office sales of property development projects at Kuala Lumpur Sentral.
IJM Corp’s 2Q earnings fell 35% to RM74.77 million from RM115.13 million a year ago as it was impacted by unrealised foreign exchange translation losses on US dollar loans.
Kulim’s earnings slumped 39.9% to RM171.07 million in 3QFY11 ended Sept 30 from RM284.65 million a year ago following the disposal of its oleochemicals group that recorded a profit of RM156 million last year. For the nine-month period, its net profit increased 23% to RM444.46 million from RM361.21 million.
However, its declaration of a single-tier interim dividend of 20% will provide some support for the stock.
Kulim’s related companies, KFC Holdings (Malaysia) Bhd and QSR Brands Bhd also recorded a decline in earnings due to higher commodity prices.
KFCH reported a 12.2% decline in its 3Q earnings to RM33.52 million from RM38.2 million a year ago as it was affected by higher food, commodity and energy costs.
QSR’s earnings fell 10.5% to RM22.22 million in 3QFY11 ended Sept 30 from RM25.33 million a year ago, as its margins were affected by inflationary pressures including commodity costs.
This article appeared in The Edge Financial Daily, November 29, 2011.
OSK Research director Chris Eng said investors should continue to be defensive for now.
“Our 2012 KLCI fair value remains at 1,466,” he said adding that recent earnings are generally poor though the research house is still compiling details.
For November, stock market data shows the FBM KLCI is down 4% or 60.34 points from 1,491.89 on Oct 31 after it closed at 1,431.55 on Nov 25.
Bursa Malaysia’s market capitalisation was reduced by RM38 billion to RM1.23 trillion from RM1.268 trillion during the period.
Among the stocks with recent corporate news are Guinness Anchor Bhd (GAB), Media Chinese International Ltd (MCIL), Sime Darby Bhd, Malaysian Resources Corp Bhd (MRCB), IJM Corp Bhd and Kulim (M) Bhd.
GAB plans to issue up to RM500 million in debt notes which will provide it with an alternative source of financing and enable it to effectively plan and manage its funding costs and requirements, it added.
The Edge weekly reports that MCIL, a newspaper publisher with the most Chinese titles in the world, has jumped onto the non-print media bandwagon and is scouting for opportunities in TV and radio.
Stocks with recent corporate results are Sime Darby, MRCB, IJM Corp and Kulim.
Sime’s first quarter net profit jumped 63.9% to RM1.07 billion from RM654.74 million a year ago, boosted by stronger results for the plantations and industrial divisions.
MRCB’s net profit for 3QFY11 ended Sept 30 jumped 191% to RM10.72 million from RM3.68 million a year ago, due mainly to higher contribution from its revenue recognition of ongoing and encouraging strata office sales of property development projects at Kuala Lumpur Sentral.
IJM Corp’s 2Q earnings fell 35% to RM74.77 million from RM115.13 million a year ago as it was impacted by unrealised foreign exchange translation losses on US dollar loans.
Kulim’s earnings slumped 39.9% to RM171.07 million in 3QFY11 ended Sept 30 from RM284.65 million a year ago following the disposal of its oleochemicals group that recorded a profit of RM156 million last year. For the nine-month period, its net profit increased 23% to RM444.46 million from RM361.21 million.
However, its declaration of a single-tier interim dividend of 20% will provide some support for the stock.
Kulim’s related companies, KFC Holdings (Malaysia) Bhd and QSR Brands Bhd also recorded a decline in earnings due to higher commodity prices.
KFCH reported a 12.2% decline in its 3Q earnings to RM33.52 million from RM38.2 million a year ago as it was affected by higher food, commodity and energy costs.
QSR’s earnings fell 10.5% to RM22.22 million in 3QFY11 ended Sept 30 from RM25.33 million a year ago, as its margins were affected by inflationary pressures including commodity costs.
This article appeared in The Edge Financial Daily, November 29, 2011.
