KUALA LUMPUR (Oct 31): The FBM KLCI is likely to start November on a positive note after notching up a monthly gain of 2.22% or 36.41 points in October, indicating domestic investor sentiment has remained resilient despite global growth worries at most world markets.
The market could also be upbeat after utility giant TENAGA NASIONAL BHD [] (TNB) posted a RM1.01 billion net profit in its fourth quarter (4Q).
Asian, European shares and the euro rose on Wednesday as investors looked ahead to key economic data and waited for Wall Street to re-open after a two-day closure, according to Reuters.
Traders said October surveys of manufacturing activity in China and the United States on Thursday, the monthly American jobs report on Friday and the US presidential election next week all had the potential to whip the markets around, it said.
Among the stocks that could be in focus on Bursa Malaysia on Thursday are TNB; IGB CORPORATION BHD [];, PLB ENGINEERING BHD []; and CI Holdings Bhd (CIH).
TNB posted a net profit of RM1.01 billion for the fourth quarter ended August 31, 2012 compared to net loss RM338.6 million a year, due mainly to the alternate fuel cost differential compensation of RM3,154.5 million, which was recognised during the current period.
The utility giant said on Wednesday that its revenue for the quarter increased to RM9.33 billion from RM9.5 billion arising from an increase in sales of electricity in the Peninsula and the tariff increase of 7.1% on 1 June 2011.
Earnings per share rose to 18.44 sen compared to loss per share of 6.21 sen, while net asset per share was RM6.57.
For the financial year ended Aug 31, TNB's net profit jumped to RM4.19 billion from RM965.4 million on the back of revenue RM35.85 billion versus RM32.24 billion.
TNB said the strengthening of the ringgit against the Japanese Yen during the quarter resulted in a translation gain of RM93.0 million as compared to a loss of RM334.6 million in the corresponding quarter.
IGB has been given the major task to construct Taiwan's biggest urban project — Taipei Twin Towers — that cost about RM8 billion, according to an official announcement by the mayor of Taipei.
This was done at a press conference on Tuesday after Taipei Mayor Hau Lung-bin chaired a city council meeting and held a meeting with the winning developer, according to a Chinese-language statement posted on the website of Taipei City Government on Wednesday.
PLB's 65% owned subsidiary PLB Terang Sdn Bhd has inked a concession agreement to operate and maintain sanitary landfill and materials recovery facility in Seberang Perai, Penang.
The company said on Wednesday that PLB Terang had entered into the agreement with Seberang Perai Pulau Pinang town councils for the concession.
CIH is still eyeing opportunities in the power sector, despite its failed bid for a Prai power plant, and hopes to firm up a new business direction within a year, a top executive said.
"I'm passionate about the power sector and there are still opportunities, but we don't want to limit ourselves to just power or consumer. Hopefully by the next AGM, we will see something firmed up," group managing director Datuk Johari Abdul Ghani told theedgemalaysia.com in an interview after the company's AGM on Wednesday.
CIH, which last year sold its core beverage unit Permanis Sdn Bhd for RM820 million to Japanese brewer Asahi Group Holdings Ltd and returned most of the proceeds rich to shareholders, is looking to repeat its feat with Permanis by buying into a business that it can turnaround and generate handsome returns for shareholders.
"I would like to buy problematic companies and turn them into successful ones. No point paying 20 or 30 times PE (price-to-earnings multiple) for assets. I'll not be fair to shareholders if we pay unrealistic prices," Johari said, conceding that pricing had been a key hurdle in CIH's search for a new unpolished gem.
Written by Surin Murugiah of theedgemalaysia.com
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