KUALA LUMPUR (March 30): Malaysian stocks may find support on Friday from quarter-end window dressing by fund managers on the final trading day of the first quarter. This could spur the FBM KLCI’s advance against the backdrop global economic growth concerns and anticipation of Malaysia’s next general election.
Analysts believe technical dynamics could still push the FBM KLCI to its historical high of 1,597 points, but the crucial question is whether the index can sustain its gains.
“Strategy wise, investors should capitalise on further rallies to take profits and stay nimble, in the wake of volatile external markets as well as ahead of the looming 13th general election,” Hong Leong Investment Bank Bhd research head Low Yee Huap wrote in a note.
The 30-stock FBM KLCI rose 1.69 points to close at 1,585.44 points on Thursday following a volatile trading session.
Stocks to watch on Friday include UNITED MALAYAN LAND BHD [] (UMLand), V.S. Industry Bhd, Berjaya Corp Bhd (BCorp), Selangor PROPERTIES [] Bhd, and CREST BUILDER HOLDINGS BHD []. Other stocks to watch are CypARK RESOURCES BHD [] and HAI-O ENTERPRISE BHD []
UMLand and Iskandar Investment Bhd have signed a collaboration agreement to conduct negotiations which will facilitate UMLand’s plan to acquire and develop tracts in Iskandar Malaysia, Johor .
V.S. Industry, a contract manufacturer of electronic products, said net profit fell 34% to RM6.64 million in the second quarter ended Jan 31, 2012 from RM10.1 million a year earlier, dragged down by lower income from its associates. Revenue, however, rose 4% to RM265.77 million from RM255.51 million.
BCorp’s net profit fell 53% to RM15.28 million in the third quarter ended Jan 31, 2012 from RM32.47 million a year earlier. Bottom line was hurt by operating expenses for its retail business and lower property sales, besides the absence of income from discontinued operations.
Selangor Properties’ net profit fell 89% to RM552,000 in the first quarter ended Jan 31, 2012 from RM5.06 million a year earlier due to currency translation losses.
Crest Builder and joint venture partner Detik Utuh Sdn Bhd will undertake a RM220 million mixed development in collaboration with landowner Syarikat Prasarana Negara Bhd.
Cypark posted net profit of RM6.51 million in the first quarter ended Jan 31, 2012, a marginal 0.6% lower than RM6.55 million a year ago but it remained upbeat for its core business of solid waste management and renewable energy.
Hai-O’s net profit rose 42.8% to RM9.06 million in the third quarter ended Jan 31, 2012 from RM6.34 million a year ago, boosted by its principal subsidiary, the multilevel marketing division. Its revenue increased 8.9% to RM62.79 million from RM57.62 million.
For the nine-month period, its net profit increased 21.6% to RM24.66 million from RM20.28 million in the previous corresponding period. Its revenue rose 2% to RM169.96 million from RM164.99 million.
