KUALA LUMPUR (May 24): The FBM KLCI could trend higher on Friday as encouraging earnings from banking giants MALAYAN BANKING BHD [] (Maybank) and CIMB Group Holdings Bhd could lend support to lift fragile investor sentiment.
External factors are still keeping global equity markets in a jittery mood, as escalating concern over the state of the eurozone economy has spooked investors.
The euro hit a 22-month low and safe-haven German bonds achieved record low yields, after data showed Europe's economic woes worsening as business confidence is undercut by talk of a Greek exit and slow progress in tackling the debt crisis, according to Reuters.
Private-sector factory activity in China also faltered in May as demand for exports fell, in a sign the impact of the eurozone crisis could be undermining global economic recovery. Europe is China's largest export market, it said.
Among the stocks that could be in focus on Friday are Maybank, CIMB, JT INTERNATIONAL BHD [] (JTI), PROTASCO BHD [], DELEUM BHD [], MBM RESOURCES BHD [] and TA ANN HOLDINGS BHD [].
Maybank's net profit for the first quarter ended March 31, 2012 rose 17.87% to RM1.35 billion from RM1.14 billion a year earlier, due mainly to growth in its net loans and advances (including Islamic finance).
The bank said on Thursday its revenue for the quarter rose 29.82% to RM6.66 billion from RM5.13 billion in 2011. Earnings per share was 17.63 sen compared to 15.60 sen previously, while net assets per share was RM4.45
Meanwhile, Maybank Kim Eng's Hong Kong office has obtained a corporate finance license, setting in motion a growth strategy to expand in Hong Kong and gain entry into Greater China.
In a statement on Thursday, Maybank Investment Bank Bhd said the license — issued by the Securities and Futures Commission of Hong Kong (SFC) — allows Maybank Kim Eng's Hong Kong office to offer corporate finance advisory services such as initial public offerings (IPOs), advisory, merger and acquisitions and corporate restructuring.
Maybank Kim Eng group chief executive Tengku Datuk Zafrul Tengku Aziz said the license would open doors for it to penetrate into Greater China.
CIMB's net profit for the first quarter ended March 31, 2012 rose 10.3% to RM1.01 billion from RM916.51 million a year earlier on the back of a 18.54% increase in revenue to RM3.26 billion from RM2.75 billion in 2011. Earnings per share was 13.60 sen compared to 12.33 sen previously, while net assets per share was RM3.49.
In a statement on Thursday, CIMB group chief executive Datuk Seri Nazir Razak said the year had started well for the banking group, driven by outperformance at the regional corporate banking and treasury markets (CBTM) division and sustained high growth momentum at CIMB Niaga. "We maintained our moderate growth momentum with total assets and net loans increasing by 14% and 12% respectively," he said.
JTI's net profit for first quarter ended March 31, 2012 rose 9.35% to RM37.75 million from RM34.52 million a year earlier, due to higher sales volume. The company said on Thursday that revenue for the quarter rose 10.54% to RM321.38 million from RM290.73 million in 2011, attributed to a 9.4% growth in sales volume in the current quarter compared to a very depressed first quarter last year.
Earnings per share was 14.43 sen compared to 13.20 sen previously, while net assets per share was RM1.88. The company declared a special gross cash dividend of 24 sen per and 38 sen per share, tax exempt under the single-tier system in respect of the financial year ending Dec 31, 2012 to be paid on June 22.
Protasco's unit Kumpulan Ikram Sdn Bhd has entered into a long-term service agreement with TENAGA NASIONAL BHD [] (TNB) as a service provider for a period of five years. Protasco said on Thursday that under the agreement, Ikram would provide engineering services and capacity building and such other services as may be agreed by TNB and Ikram from time to time during the existence of the agreement.
Deleum is working towards geographical expansion to establish regional presence by 2015, said its managing director Nan Yusri Nan Rahimy. In a statement on Thursday, Nan Yusri said 2011 marked the best results the group had enjoyed to date, despite the many headwinds.
"However, the oil and gas industry has been identified as one of the National Key Economic Areas and this has greatly spurred upstream activities leading to an increase in demand for the products and services offered by Deleum," he said.
MBM Resources' net profit for the first quarter ended March 31, 2012 rose 6.79% to RM41.02 million from RM38.41 million a year earlier, on the back of 32.66% increase in revenue to RM543.66 million from RM409.81 million in 2011. Earnings per share was 16.88 sen compared to 15.82 sen previously, while net assets per share was RM4.72.
Reviewing its performance on Thursday, it said its overall total vehicle sales improved marginally in the first quarter of 2012 by 0.1% as compared against the same period of 2011.
Ta Ann's net profit for the first quarter ended March 31, 2012 fell more than half to RM11.44 million from RM26.56 million a year earlier. The company said on Thursday that revenue for the quarter fell 9.29% to RM164.58 million from RM181.44 million in 2011. Earnings per share was 3.70 sen compared to 8.60 sen previously, while net assets per share was RM2.97.
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