KUALA LUMPUR: The market may undergo a consolidation phase on May 27 following the weaker corporate results while investors would use the excuse from the threat of another nuclear test by North Korea to take profit.

However, the strong overnight close on Wall Street could underpin the sentiment. In the US, a more confident consumer translated into a rallying stock market on May 26, as JPMorgan Chase and American Express paced a nearly 200-point jump in the Dow Jones Industrial Average.

According to wire reports, the Dow Jones Industrial Average gained 196.17 points, or 2.37%, to 8473.49, snapping a four-day losing streak. The index, which had its biggest point and percentage gain since May 18, is off 6.2% from its 2009 closing high of 9035, hit on Jan. 2.

The Standard & Poor's 500 index rose 23.33, or 2.63%, to 910.33, also snapping a four-day losing streak. Every sector in the S&P 500 traded in the green, with financials and consumer discretionaries pacing the move.

At the home front, Bank Negara is scheduled to announce its first quarter GDP data in the afternoon and analysts are expecting a sharper contraction after a 0.1% growth in the fourth quarter. The second quarter is also expected to be weaker before signs of a recovery are seen in the later part of the second half.

With the run-up in the crude palm oil now stalling, with the third-month futures falling RM15 to RM2,430,  this could also see some profit taking on plantations. Crude oil slipped to US$60 per barrel.

Stocks which could see trading interest include IJM Corp, Eastern & Oriental, MMC and EON Capital.

IJM Corp’s net profit for the fourth quarter fell to RM53.34 million from RM116.47 million a year ago (which included a RM65 million one-off gain) while CPO prices fell and construction costs rose.

It declared a second interim dividend for FY09 ended March 31, 2009 of five sen per share less tax of 25% to be paid on Aug 21. It also proposed a bonus issue on a two-for-five basis.

E&O swung into the red with net loss of RM44.61 million in the fourth quarter ended March 31, a contrast from the net profit of RM9.27 million a year ago.

E&O has proposed to raise at least RM92.6 million via a rights issue, which would be used as working capital, finance possible mergers and acquisitions for expansion, as well as repay borrowings.

It also proposed a renounceable rights issue of up to RM244.57 million worth of debt notes on the basis of one irredeemable convertible loan stocks 2009/2019 for every two E&O stock units held.

Sunway Holdings’s 75.1%-owned Sunway Engineering Sdn Bhd (Abu Dhabi branch) has secured a RM326 million job venture for proposed Arzanah Development in Abu Dhabi.

Meanwhile, EON Cap has proposed to issue up to 58.71 million new warrants to Primus Pacific Partners 1 LP at  a total consideration of RM29.5 million or 50.24 sen per new warrant.

MMC Corp is on the acquisition trail of water treatment plants in several states in Peninsular Malaysia while it is also in talks to sell 19% of Port of Tanjong Pelepas.

Hap Seng Plantations Holdings is looking at expanding its total land bank by 50% from its current size of slightly over 38,000 ha in the next two to three years.