Stocks to Watch Top Glove, United Malacca, Kenmark Industrial, MISC, Kumpulan Perangsang Selangor

Fragile investor sentiment could weigh on Bursa Malaysia on Thursday, June 17 as evident from some mild profit taking at the local stock market yesterday.

While key Asian markets, with the exception of Hong Kong, Taiwan and China, whose markets were closed for holidays, advanced yesterday, European markets that opened higher on Wednesday barely managed to retain their gains.

Lingering worries about the eurozone debt troubles continue to plague global equity markets despite assurances from various authorities.

Helping to calm some nerves over Spain's debt situation, the European Commission denied a report that the European Union, the IMF and the US Treasury were drawing up a liquidity plan for Spain, including a credit line of up to €250 billion (RM1 trillion), according to Reuters.

The pan-European index has dropped 6.5% since mid-April when worries about the eurozone's debt crisis started to intensify, said Reuters.

At Bursa Malaysia yesterday, although the benchmark FBM KLCI breached the psychological 1,300-point level and closed 4.76 points higher at 1,303.13, some profit-taking emerged towards late afternoon.

The benchmark index gave up some of its gains after having advanced as much as 13.73 points to its intra-day high of 1,312.10.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on June 16 had advised local investors to trade on an intra-day basis only and not hold onto stocks for the longer term.

Swift profit-taking activities could set in, he said.

"A recent typical market action that we have noted is that the FBM KLCI trades with a positive (or negative) range of two points.

"Also, any large rise in the overnight American market normally yields an initial rise (gap-up) in the Malaysian bourse. The next typical intra-day action is a softer tone due to profit-taking," said Lee.

Among the stocks that could be in focus are Top Glove Corp Bhd, UNITED MALACCA BHD [], Kenmark Industrial Co (M) Bhd, MISC BHD [], KUMPULAN PERANGSANG SELANGOR [] Bhd

Top Glove Corp yesterday declared a first interim single tier dividend of 14 sen net per share in respect of financial year ending August 31, 2010.

The company's net profit for the third quarter ended May 31, 2010 rose 52.9% to RM64.48 million from RM42.17 million a year ago, on the back of continued increase in demand for gloves.

United Malacca extended its gains yesterday and rose 14 sen to RM8.61 on the back of its proposed a bonus issue of 67 million bonus shares to be credited as fully paid-up, on the basis of one bonus share for every two existing shares.

It had also proposed a final dividend of 25 sen, consisting of a gross dividend of 11 sen per share, tax-exempt dividend of 4.5 sen and single-tier dividend of 9.5 sen per share for the financial year ended April 30, 2010.

Kenmark could be in focus again after the Securities Commission Malaysia (SC) obtained an ex-parte injunction to refrain Datuk Ishak Ismail from dealing with RM10.2 million, the proceeds from his disposal of about 58.7 million shares of Kenmark.

In a statement Wednesday, June 16, the SC said that the Kuala Lumpur High Court also ordered Ishak to furnish full and complete details of his assets, whether in Malaysia or elsewhere, within four days.

The SC said it sought the injunction following its investigations into suspected breaches of securities laws by Ishak.

MISC has appointed Datuk Nasarudin bin Md Idris as president and chief executive officer with effect from June 15, 2010.

Nasaruddin has held various positions in Petroliam Nasional Bhd and is a management committee member of the national oil company.

Kumpulan Perangsan Selangor Bhd (KPS) yesterday announced that it had appointed Subang member of parliament (MP) Sivarasa Rasiah and Teluk Kemang MP Datuk Kamarul Baharain Abbas, both of whom are PKR leaders, to its board of directors.

KPS is a subsidiary of the Selangor state government's Kumpulan Perangsan Darul Ehsan Bhd and undertakes projects in the infrastructure and utility sectors as well as the property sector.

KPS holds stakes in two water treatment concessions in Selangor, Konsortium Abass Sdn Bhd (Abass) and Syarikat Pengeluar Air Selangor Holdings Bhd (Splash).


Written by Surin Murugiah