KUALA LUMPUR (Oct 24): The FBM KLCI could extend its gains for a third day running on Thursday ahead of the extended weekend, riding on improving investor local sentiment and support for defensive blue chips.
Support for blue chips has seen the FBM KLCI remain above the important 1,660-point level for the past week.
An HSBC survey of Chinese manufacturers suggesting growth was recovering in the world's second largest economy helped trim declines in Asian shares on Wednesday, though investors remained wary due to weak corporate earnings worldwide and enduring worries over a global slowdown, according to Reuters.
Signs of stabilisation in China's slowing economy helped lift European shares on Wednesday, though gains were kept in check by weak corporate earnings worldwide, it said.
The China HSBC Flash Manufacturing Purchasing Managers Index (PMI) rose to a three-month high of 49.1 in October, but is still below the 50-point mark which separates contraction from expansion, said Reuters.
Among the stocks that could be in focus are Astro Malaysia Holdings Bhd; NAGAMAS INTERNATIONAL BHD []; NAIM HOLDINGS BHD []; Bumi Armada Bhd; and ZHULIAN CORPORATION BHD [].
Astro could extend its gains on Thursday, riding on its improved performance on Wednesday after a flat debut on Bursa Malaysia on Oct 19.
MIDF Research on Tuesday had initiated coverage on Astro with a "buy" rating at RM2.77, with a target price of RM3.40.
The research house said Astro's growth would be supported by (i) its unique targeted approach to drive subscribers and Average Revenue Per User (ARPU) and (ii) rising income across various household segments, which will drive pay-TV affordability and ARPU.
Niche property developer Nagamas has launched the first phase of its property development project called the Silverlakes@Batu Gajah, Perak, with a 111-villa unit wellness resort called the Alorie Cocoon.
Alorie Cocoon will be built on a 115-acre lakeside site in the sleeping hollow of Batu Gajah, part of the 511-acre RM1 billion gross development value (GDV) Silverlakes project, which will feature among others retail and residential portions, besides the resorts.
The resort enclave is estimated to be worth RM230 million in GDV, and will feature high end lakeside and garden villas with pricing starts at about RM2 million per unit, according to Nagamas chief executive officer Shaik Rizal Sulaiman during the launch on Wednesday.
Naim's wholly-owned unit has received the Letter of Award (LoA) for a RM204.66 million subcontract for the Sungai Buloh-Kajang tract of the Klang Valley Mass Rapit Transit (MRT) project.
This confirm earlier news reports on the award for Package S2, being the CONSTRUCTION [] and completion of elevated stations and other associated works at Taman Industri Sungai Buloh, PJU5 and Dataran Sunway. In reply to a stock exchange query on Oct 4, Naim had said it was still waiting for a letter of award.
Offshore oil and gas service provider Bumi Armada, together with its subsidiaries, has secured five new contracts worth some RM147 million with options for contract extensions worth another RM102 million.
"These five new contracts are a reflection of our aggressive focus on one of our engines of growth, the offshore support vessel (OSV) segment and our international expansion," said group chief executive officer Hassan Basma in a statement on Tuesday.
Among the five contracts — mainly between its subsidiaries Bumi Armada Navigation Sdn Bhd and Armada Offshore OSV Ltd — one is located in Gabon, two are in the Republic of Congo, while the remaining two are in Saudi Arabia.
Its contract for the three-month charter of an accommodation workboat with Gabonese firm Total Gabon represents the group's first venture into Gabon.
The vessels under the contracts are expected for delivery between October to December 2012, it said.
Zhulian saw its net profit for the third quarter (3Q) ended Aug 31 rise 16% to RM28.22 million from RM24.32 million in the previous corresponding quarter, contributed by higher export sales and growing product demand.
Its revenue for the quarter increased by 20.2% to RM110.38 million compared to RM91.79 million last year.
The company declared a third interim single tier dividend of 3 sen per share of 50 sen each to be paid on Dec 7.
"The board is of the opinion that its internal target is achievable based on the current market condition and current available information of local and overseas markets," it said.
Written by Surin Murugiah of theedgemalaysia.com
No comments:
Post a Comment