KUALA LUMPUR (Feb 17): The pullback on Bursa Malaysia and key regional markets could see investors remaining on the sidelines until and unless the bailout for Greece is implemented and completed.
The warning by Moody’s Investors Service’s announcement threatening to lower the ratings of 17 banks and securities firms with global capital markets operations also unnerved the markets.
On Thursday, the FBM KLCI fell 10.81 points or 0.69% to 1,550.49, the lowest since Feb 2. Turnover was 2.19 billion shares valued at RM1.97 billion.
It should be noted the weakening in the broader market where declining counters beat advancers 668 to 239, the largest margin in recent days, and putting a halt in the recent rally.
However, despite the cloud of uncertainty, there were several positive corporate developments on the local front which could lure some mild buying interest.
Among the stocks to watch are UZMA BHD [], Tradewinds PLANTATION []s Bhd, Hibiscus Petroleum Bhd, TASEK CORPORATION BHD [], CI Holdings Bhd and Maxis Bhd.
Uzma secured a RM350 million contract from Petronas Carigali Sdn Bhd to provide well testing equipment and services for Petroliam Nasional Bhd’s drilling projects in the west region. The contract is for a period of five years effective from April 1, 2012 to March 31, 2017.
Tradewinds Plantations’ indirect unit Mardec International Sdn Bhd is selling its 45% stake in R1 International Pte Ltd for US$25.86 million.
R1’s core activities are trading of natural rubber, latex concentrate and synthetic rubber. R1 is a global rubber trading company specialising in rubber commodity which operates in Malaysia, Thailand, Japan, China and India.
Hibiscus Petroleum has received the Securities Commission’s approval for its qualifying acquisition of a 35% stake in Lime Petroleum Plc for US$55 million.
Tasek's earnings fell 57.1% to RM33.44 million in the fourth quarter ended Dec 31, 2011 from RM78.00 million a year ago, as a result of higher production costs.
Despite the lower earnings, it declared dividends totaling 86%. They comprised of a special ordinary dividend of 50% less income tax of 25%; preference dividend of 6% single tier and final ordinary dividend of 30% single tier.
Revenue rose 25.11% to RM167.24 million from RM133.67 million. Earnings per share were 26.98 sen compared to 48.88 sen.
CI Holdings Bhd posted net profit of RM650.39 million in the second quarter ended Dec 31, 2011 from RM11.17 million a year ago, boosted by the disposal of its Permanis Group to Asahi for RM820.0 million cash.
Its revenue declined slightly to RM11.35 million from RM11.96 million a year ago due to a slowdown in the CONSTRUCTION [] sector. The improvement in profit before tax was due largely to income received from the disposal of Permanis of RM688.43 million. It declared a dividend of RM4.60 per share totaling RM653.20 million.
Maxis Bhd has proposed to undertake a RM2.45 billion unrated Sukuk Musharakah programme with a 10-year maturity. Of the proceeds, RM1.45 billion would be used for refinancing of existing loans and RM1.0 billion for the capital expenditure and/or working capital and/or general funding requirements.
The warning by Moody’s Investors Service’s announcement threatening to lower the ratings of 17 banks and securities firms with global capital markets operations also unnerved the markets.
On Thursday, the FBM KLCI fell 10.81 points or 0.69% to 1,550.49, the lowest since Feb 2. Turnover was 2.19 billion shares valued at RM1.97 billion.
It should be noted the weakening in the broader market where declining counters beat advancers 668 to 239, the largest margin in recent days, and putting a halt in the recent rally.
However, despite the cloud of uncertainty, there were several positive corporate developments on the local front which could lure some mild buying interest.
Among the stocks to watch are UZMA BHD [], Tradewinds PLANTATION []s Bhd, Hibiscus Petroleum Bhd, TASEK CORPORATION BHD [], CI Holdings Bhd and Maxis Bhd.
Uzma secured a RM350 million contract from Petronas Carigali Sdn Bhd to provide well testing equipment and services for Petroliam Nasional Bhd’s drilling projects in the west region. The contract is for a period of five years effective from April 1, 2012 to March 31, 2017.
Tradewinds Plantations’ indirect unit Mardec International Sdn Bhd is selling its 45% stake in R1 International Pte Ltd for US$25.86 million.
R1’s core activities are trading of natural rubber, latex concentrate and synthetic rubber. R1 is a global rubber trading company specialising in rubber commodity which operates in Malaysia, Thailand, Japan, China and India.
Hibiscus Petroleum has received the Securities Commission’s approval for its qualifying acquisition of a 35% stake in Lime Petroleum Plc for US$55 million.
Tasek's earnings fell 57.1% to RM33.44 million in the fourth quarter ended Dec 31, 2011 from RM78.00 million a year ago, as a result of higher production costs.
Despite the lower earnings, it declared dividends totaling 86%. They comprised of a special ordinary dividend of 50% less income tax of 25%; preference dividend of 6% single tier and final ordinary dividend of 30% single tier.
Revenue rose 25.11% to RM167.24 million from RM133.67 million. Earnings per share were 26.98 sen compared to 48.88 sen.
CI Holdings Bhd posted net profit of RM650.39 million in the second quarter ended Dec 31, 2011 from RM11.17 million a year ago, boosted by the disposal of its Permanis Group to Asahi for RM820.0 million cash.
Its revenue declined slightly to RM11.35 million from RM11.96 million a year ago due to a slowdown in the CONSTRUCTION [] sector. The improvement in profit before tax was due largely to income received from the disposal of Permanis of RM688.43 million. It declared a dividend of RM4.60 per share totaling RM653.20 million.
Maxis Bhd has proposed to undertake a RM2.45 billion unrated Sukuk Musharakah programme with a 10-year maturity. Of the proceeds, RM1.45 billion would be used for refinancing of existing loans and RM1.0 billion for the capital expenditure and/or working capital and/or general funding requirements.
