KUALA LUMPUR (April 14): Malaysian shares are anticipated to rise next week and analysts expect the FBM KLCI to extend its rally higher supported by positive sentiment on good Q1 earning result, further stimulus from global central banks, easing borrowing costs in Europe and stronger than expected China’s economic recovery.
Investor jitters at the regional markets over rising tensions in the Korean Peninsula dissipated with North Korea’s botched missile launch.
However, euro zone crisis is flaring up and debt auctions by safe-haven Germany and current bad boy Spain in the coming week will provide a gauge how far investor sentiment has changed since the shock and awe of recent ECB liquidity injections has worn thin, according to Reuters.
Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said the impressive rebound made by China stock market (China Shanghai composite posted best-in-two-months daily performance last week) would give more upside momentum to the emerging markets including Malaysia.
“As China is the world's biggest importer of commodities, we reckon stronger Chinese stocks and weaker USA dollar will lead to more commodity buying (FTSE China climbed 4%, CRB Index up 1% and Dollar Index down 2% respectively) which in turn will benefit Malaysian stocks.
Among the stocks that could be in focus on Bursa Malysia are Eversendai Corp Bhd, BOUSTEAD HOLDINGS BHD [], TENAGA NASIONAL BHD [] and Genting PLANTATION []s Bhd.
Eversendai Corp will undertake a 193 million riyal (RM158 million) structural steel job for the railway station at King Abdul-Aziz International Airport in Saudi Arabia.
The company said last Friday that it ha been appointed as subcontractor for the project by Saudi Binladin Group Architecture & Building CONSTRUCTION [] Division.
Bosutead has roped in Luxembourg-based Ikano Holding SA as a joint venture (JV) partner to acquire prime Kuala Lumpur land where both companies intend to develop and manage a shopping centre.
Boustead last Friday said the JV would it to increase its portfolio of retail investment PROPERTIES [] and leverage on its expertise to jointly develop and manage a shopping centre in the Kuala Lumpur city centre location," Boustead said.
Ikano owns and runs IKEA retail outlets across South East Asia under a franchise agreement with IKEA System BV.
Tenaga could extend its gains on Monday on the back of its net profit rising more than four fold from a year earlier, as a RM2.02 billion fuel-cost compensation from the government and Petroliam Nasional Bhd mitigated the impact of costlier fuel to the state-owned utility's profits.
The stock rose 10 sen to close at RM6.61 last Friday.
Genting Plantations will acquire a controlling 63.2% stake in a joint venture (JV) company for US$116 million (about RM355 million), a move which will give the acquirer access to some 74,000 ha of oil palm plantation in Kalimantan, Indonesia.
In a statement to Bursa Malaysia on Friday, Genting Plantations said it would jointly own the Singapore-based JV entity Global Agripalm Investment Holdings Pte Ltd with Global Agrindo Investment Co Ltd which will hold the remaining stake. Global Agrindo is part of Indonesia-based Sin Tek Huat Group.
Investor jitters at the regional markets over rising tensions in the Korean Peninsula dissipated with North Korea’s botched missile launch.
However, euro zone crisis is flaring up and debt auctions by safe-haven Germany and current bad boy Spain in the coming week will provide a gauge how far investor sentiment has changed since the shock and awe of recent ECB liquidity injections has worn thin, according to Reuters.
Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said the impressive rebound made by China stock market (China Shanghai composite posted best-in-two-months daily performance last week) would give more upside momentum to the emerging markets including Malaysia.
“As China is the world's biggest importer of commodities, we reckon stronger Chinese stocks and weaker USA dollar will lead to more commodity buying (FTSE China climbed 4%, CRB Index up 1% and Dollar Index down 2% respectively) which in turn will benefit Malaysian stocks.
Among the stocks that could be in focus on Bursa Malysia are Eversendai Corp Bhd, BOUSTEAD HOLDINGS BHD [], TENAGA NASIONAL BHD [] and Genting PLANTATION []s Bhd.
Eversendai Corp will undertake a 193 million riyal (RM158 million) structural steel job for the railway station at King Abdul-Aziz International Airport in Saudi Arabia.
The company said last Friday that it ha been appointed as subcontractor for the project by Saudi Binladin Group Architecture & Building CONSTRUCTION [] Division.
Bosutead has roped in Luxembourg-based Ikano Holding SA as a joint venture (JV) partner to acquire prime Kuala Lumpur land where both companies intend to develop and manage a shopping centre.
Boustead last Friday said the JV would it to increase its portfolio of retail investment PROPERTIES [] and leverage on its expertise to jointly develop and manage a shopping centre in the Kuala Lumpur city centre location," Boustead said.
Ikano owns and runs IKEA retail outlets across South East Asia under a franchise agreement with IKEA System BV.
Tenaga could extend its gains on Monday on the back of its net profit rising more than four fold from a year earlier, as a RM2.02 billion fuel-cost compensation from the government and Petroliam Nasional Bhd mitigated the impact of costlier fuel to the state-owned utility's profits.
The stock rose 10 sen to close at RM6.61 last Friday.
Genting Plantations will acquire a controlling 63.2% stake in a joint venture (JV) company for US$116 million (about RM355 million), a move which will give the acquirer access to some 74,000 ha of oil palm plantation in Kalimantan, Indonesia.
In a statement to Bursa Malaysia on Friday, Genting Plantations said it would jointly own the Singapore-based JV entity Global Agripalm Investment Holdings Pte Ltd with Global Agrindo Investment Co Ltd which will hold the remaining stake. Global Agrindo is part of Indonesia-based Sin Tek Huat Group.
