Blue chips may trade in a narrow range with some downside pressure this week, starting Monday, Aug 16, as investors would be hard to ignore the negative news from the US.
On Friday, Aug 13, the Dow Jones industrial average dropped 16.80 points, or 0.16 percent, to 10,303.15. The Standard & Poor's 500 Index dropped 4.36 points, or 0.40 percent, to 1,079.25. The Nasdaq Composite Index dropped 16.79 points, or 0.77 percent, to 2,173.48.
The recent data in US failed to shore up investors’ confidence. US retail sales rebounded last month, as did the overall July Consumer Price Index, but the data was consistent with an economy that has slowed in recent months.
Reuters expect US stock investors to brace for further signs of weakness in the US recovery next week, as earnings from key retailers are expected. Industrial production, housing and inflation data will come under scrutiny as well, just as stocks wrapped up their worst week in six.
In Malaysia, MALAYSIAN AIRLINE SYSTEM BHD [] is due to report its second quarter earnings on Monday while Bank Negara is scheduled to release its second quarter GDP data on Wednesday, Aug 18 and expectations are that it would be in the high single digit.
However, expectations are that the economy will grow at a slower pace in the second half.
At Bursa Malaysia, Berjaya Retail Bhd will be listed on Bursa Malaysia. Analysts had value BRetail at 51 sen, based on 14 times FY11 EPS, in line with their sector retail price-to-earnings ratio (PER) of 14 times.
BRetail operates the 7-Eleven chain of convenience stores; and marketing and direct selling of consumer durables on instalment option schemes, via Singer.
Its plans for 7-Eleven include expanding its franchise programme; offering new premium fresh F&B items; Expanding its distribution network by the opening of 150 new outlets in CY2010; and opening of new logistics centre to maximise efficient receiving, processing and distribution of goods.
As for Singer, the plans include modernisation and refurbishment of Singer branches, to attract and generate sales from walk-in customers; and expanding its distribution network to 1,000 branches (from 561 branches in May 10 or +78%) within the next five years.
Two contracts valued at more than RM1.2 billion to BOUSTEAD HEAVY INDUSTRIES CORP [] Bhd (BHIC) to undertake the in-service support for two of the navy's Scorpene submarines.
BHIC’s subsidiary Boustead DCNS Naval Corporation Sdn Bhd had received the letter of award for total contract sums of 193 million euros (RM784.22 million) and RM532 million for the period ending Nov 30, 2015.
DRB-HICOM BHD [] and Volkswagen AG (Volkswagen) will collaborate on the assembly and manufacturing of Volkswagen vehicles in Malaysia at the former's plant in Pekan, Pahang.
DRB-Hicom's group managing director Datuk Seri Mohd Khamil Jamil said both parties would jointly plan the production of Volkswagen models in Malaysia and this included strengthening Volkswagen's existing sales activities and market presence in the country.
PETRA ENERGY BHD []'s unit Petra Resources Sdn Bhd has secured three contracts worth RM26.35 million from Petronas Carigali Sdn Bhd.
Petra Energy said the first contract was to provide the hook-up and commissioning work.
CAHYA MATA SARAWAK BHD []'s (CMSB) subsidiary PPES Works (Sarawak) Sdn Bhd has secured a road CONSTRUCTION [] project in Miri from the federal government valued at RM101.3 million.
CMSB said PPES had received a letter of acceptance of tender to build an access road from Pekan Beluru to Batang Tinjar.
GENTING BHD [] provided the spark for the lacklustre market on Friday, rallying blue chips higher to snap its three straight day of losses. The fresh optimism saw the FBM KLCI closing 10.82 points or 0.8% higher to 1,360.15.
by Joseph Chin
The Edge Malaysia
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