KUALA LUMPUR (Sept 19): The FBM KLCI could edge lower on Wednesday, as global investor sentiment remains on tenterhooks, given rising concerns from global growth worries and geopolitical tensions.
Asian equity markets came under some pressure on Tuesday as raging anti-Japan protests in China dragged regional stocks lower.
Meanwhile, European shares and the euro slipped on Tuesday, leading a broader drop in risk assets as investors turned their attention from central bank stimulus to slowing global growth and doubts about Spain's desire for an international aid package, according to Reuters.
An analyst with a local bank-backed research house said that rising geopolitical risks should not be an issue under the normal circumstances.
"But with the global equity market near its recent high, any negative factor is a good reason to sell," he said.
He added that global equity market was going to have a very challenging second half of September and in the month of October.
"Too much good news has been priced in but fundamentals continue to deteriorate. Liquidity driven rally from the US is nearing its end," he said.
Among the stocks that could be in focus on Wednesday are Perisai Petroleum Teknologi Bhd; Scientex Bhd; UAC Bhd; Padiberas Nasional Bhd, (Bernas); MBf Holdings Bhd; Berjaya Sports Toto Bhd (BToto); and property developers.
Perisai Petroleum has secured a RM122.64 million (US$40 million) bareboat charter contract to supply eight vessels to its 51% owned Intan Offshore Group.
Perisai in a filing to Bursa Malaysia Tuesday said that the contract was for a duration of three years with a daily charter hire of US$36,630 per day.
It said that the agreement came with an option for two additional extensions of one year each at the same terms. The current contract is a renewal of a previous contract which expired on Aug 31.
Scientex's net profit rose 12.56% for its fourth quarter (4Q) ended July 31, to RM23.39 million or 10.88 sen per share, from RM20.78 million a year ago due to higher manufacturing revenue.
Revenue increased 10.14% to RM226.01 million from RM205.20 million previously.
In a filing on Bursa Malaysia, it attributed its higher earnings to stronger export sales in its stretch film products coupled with the group's property division which benefited from high margins and a favourable product mix in its developments.
For its full year results ended July 31, Scientex's revenue was up by 9.58% to RM881.03 million from RM804.02 million, while net profit was 8.63% higher to RM83.92 million compared to RM77.25 million a year ago.
UAC shareholders have been advised to accept the privatisation offer Boustead Holdings Bhd via a selective capital reduction and repayment exercise, as the RM4.30 offer per share "was at a premium".
KAF Investment Bank Bhd, the independent adviser, said the RM4.30 per share offer represented a premium of RM1.30 — or 43.33% — over its 5-day volume weighted average market price up to May 17, 2012.
It added that the shares of UAC had not been traded above RM4.30 since Jan 16, 2008, and had been trading lower than its offer price after the announcement of the privatisation was made.
Bernas has been granted another 10 years by the government to conserve, maintain and manage the nation's rice stockpile commencing from Jan 11, 2011 to Jan 10, 2021.
Bernas, in a filing to Bursa Malaysia on Tuesday, said its other obligations include acting as the buyer of last resort for paddy farmers, managing the Rice Millers Scheme and the distribution of Paddy Price Subsidies to farmers on behalf of the Government.
With the agreement, Bernas would continue to fulfill its obligations under a Privatisation Agreement signed with the Government in 1996.
MBf will be listing its automobile business via its subsidiary Boroko Motors Ltd in Papua New Guinea (PNG).
MBf in a filing on Bursa Malaysia said that it has identified its auto business as a key driver moving forward and was optimistic on its growth potential in the country.
The listing of Boroko Motors on the Port Moresby Stock Exchange is currently in its preliminary stage, it added.
BToto's net profit for the first quarter ended July 31, 2012 rose 22.4% to RM114.7 million compared with RM93.7 million a year earlier.
Revenue for the quarter rose to RM899.91 million from RM845.81 million in 2011.
BToto said on Tuesday that the increase in earnings during the quarter was fueled by improved results at its priced subsidiary Sports Toto Malaysia Sdn Bhd (STM) and Berjaya Philippines Inc (BPI).
It declared a first interim single tier exempt dividend of 6.5 sen per share, to be paid on Oct 16.
Property developers with developments or landbanks located around the area of upcoming financial hub Tun Razak Exchange (TRX) will stand to benefit from the mega project by 1Malaysia Development Bhd (1MDB), according to UOB KayHian
UOB KayHian in a note Tuesday maintained its "marketweight" call on the property sector after meeting with management at 1MDB to discuss the TRX development, a project which is expected to generate a gross development (GDV) of RM26 billion in the next 15 to 20 years.
The research house noted that there are ten prequalified contractors eyeing the project, singling out construction outfits WCT Bhd, IJM Corp Bhd and Mudajaya Group Bhd as potential winners, adding that Sunway and Boustead could also benefit.