KUALA LUMPUR (Jan 31): Stocks on Bursa Malaysia could trade on a cautious note on Tuesday following investors’ disappointment over the absence of a Greek debt deal, though the broader market was firmer with interest in lower liners.
Reuters reported that dampened optimism about the global economic picture and the Greek crisis pushed the euro off six-week highs and sent world stocks lower on Monday with investors cautious ahead of an EU leaders’ summit.
EU leaders will sign off on a permanent rescue fund for the euro zone at a summit on later on Monday and are expected to agree on a balanced budget rule in national legislation, with unresolved problems in Greece casting a shadow on the discussions.
As for Bursa Malaysia, the FBM KLCI fell 7.33 points to close at 1,513.55, weighed by losses including at Genting, Hong Leong Bank and HLFG. However, gainers led losers by 460 to 387, while 310 counters traded unchanged. Volume was 2.31 billion shares valued at RM1.84 billion.
Among the companies which could see trading interest are Malaysia Airports Holdings Bhd (MAHB), PUBLIC BANK BHD [], MALAYSIAN PACIFIC INDUSTRIES [] Bhd (MPI) and Axiata Group Bhd.
Other stocks of interest would be Perusahaan Sadur Timah Malaysia (Perstima) Bhd, D’nonce TECHNOLOGY [] Bhd and also JOTECH HOLDINGS BHD [], and AIC CORPORATION BHD [] and AutoV Corporation Bhd.
MAHB plans to raise RM598.40 million from a proposed share placement exercise to finance the new low cost carrier terminal at Kuala Lumpur International Airport (klia2).
The airports operator said it planned to issue 110 million new shares, or 10% of its issued and paid-up share capital to investors to be identified via a book building exercise.
Based on a 5% discount to the five-day volume weighted average market price (VWAMP) of MAHB shares up to and including Jan 27, of RM5.7298, the indicative issue price for the placement shares would be RM5.44.
Public Bank Bhd recorded net profit of RM876.98 million in the fourth quarter ended Dec 31, 2011, up 3.6% from a year ago due to higher net interest and net income from Islamic banking business. It declared a second interim single-tier dividend of 28 sen per share.
Its revenue rose 11.8% to RM3.32 billion from RM2.97 billion a year ago. Its earnings per share were 25.04 sen compared with 24.16 sen.
For the 4Q ended Dec 31, 2011, the group registered a pre-tax profit of RM1.163 billion, an increase of RM33.0 million or 2.9% as compared to the previous corresponding quarter. The improved performance was mainly due to higher net interest and net income from Islamic banking business.
MPI posted net loss RM16.21 million in the second quarter ended Dec 31, 2011 compared to net profit RM25.29 million a year earlier, due mainly to weaker demand and lower revenue.
Its revenue for the quarter fell 24.04% to RM279.23 million from RM367.59 million in 2010. Loss per share was 8.37 sen compared to earnings per share of 13.05 sen, while net assets per share were RM3.77.
Axiata Group Bhd has received another two-year extension from the Securities Commission (SC) to get the local authorities’ approval for its outdoor structures.
The SC had given it until Jan 29, 2014 to get the approvals for the outdoor structures, which were part of the conditions for its listing on Bursa Malaysia.
As at Dec 19, 2011, Axiata said 22 outdoor structures were pending approval from local authorities. Applications for 27 outdoor structures have been declined, and the Celcom Group is in the midst of appealing to the relevant local authorities.
Perstima’s net profit for the third quarter ended Dec 31, 2011 fell 42.95% to RM7.99 million from RM14.01 million a year ago, due mainly to lower sales volume coupled with lower profit margin. Its revenue for the quarter slipped 9.4% to RM204.26 million from RM225.47 million in 2010.
D’nonce Technology Bhd posted net loss of RM6.11 million in the first quarter ended Nov 30, 2011 compared with a net profit of RM498,000 a year ago due to the impact of the severe flooding in Thailand last year.
Its factories in Bangkok were inundated by the flood waters which damaged its property, plant and equipment and inventories in early October 2011. As to date, its factories in Bangkok have yet to commence operations.
Datuk Goh Tian Chuan’s special purpose vehicle Temasek Formation Bhd (TFB) has received the Securities Commission’s approval to merge Jotech Holdings Bhd, and AIC Corporation Bhd and AutoV Corporation Bhd.
The proposed merger of the three companies for a total consideration of about RM696 million would be satisfied via the issuance of new Temasek Formation shares.
