Friday 29 Mar 2024
By
main news image

KUALA LUMPUR: Market sentiment remained upbeat on May 25 which saw the KL Composite Index hitting a fresh high since September despite the weaker set of earnings during the January-March quarter.

Investors are trying to look beyond the second quarter as they expect a turnaround in the later part of this year. However, this optimism would also hinge on the economic fundamentals of the major developed countries and China.

Bank Negara will announce its overnight policy rate (OPR) at the monetary policy meeting on May 26 but the consensus is that it would stick to its current policy of 2%. The central bank is scheduled to announce the first quarter GDP data on May 27.

Stocks which would attract interest on May 26 include Sime Darby Bhd, SapuraCrest Petroleum Bhd, Puncak Niaga Holdings Bhd and Glenealy Plantations (M) Bhd following fresh corporate developments.

Sime Darby’s third quarter net profit was RM150.57 million compared with RM1.09 billion a year ago, due to lower average crude palm oil (CPO) prices and lower production. Revenue fell to RM7.47 billion compared with RM8.64 billion. Earnings per share were 2.51 sen from 18.13 sen.

For the nine months, net profit was RM1.29 billion compared with RM2.49 billion in the previous corresponding period. Revenue declined to RM23.47 billion from RM24.92 billion. Sime Darby had revised its full year earnings to RM1.9 billion.

SapuraCrest's 50%-owned SapuraAcergy Sdn Bhd secured a US$60 million offshore installations decommissioning contract from Nippon Steel Engineering Co Ltd. It expects the contract to contribute positively to the group’s earnings for FY ending Jan 31, 2011.

Puncak Niaga's  net profit for the first quarter ended March 31, 2009 fell to RM498,000 from RM3.53 million a year earlier after excluding minority interests.  If the minority interests of RM7.17 million were included, profit for the period was RM7.67 million. Puncak’s profit from operations for the period was RM95.7 million from RM80.82 million a year earlier.

Glenealy Plantations (M) Bhd reported that its 3Q net profit tumbled to RM1.85 million from RM16.28 million yr ago, revenue fell to RM31.34 million from RM54.7 million due to lower CPO output.

BIMB Holdings Bhd’s earnings for the third quarter ended March 31, 2009 fell 68% to RM13.69 million from RM42.82 million a year ago, due to higher allowance of RM30 million for losses on financing.

Genting Bhd and Resorts World Bhd are expected to see active trade on expectations the group could be one of the parties eyeing MGM Mirage Ltd (MGM), which is speculated to be selling its 50% stake in MGM Grand Macau.

Stemlife Bhd is hoping to see a 10% increase in new sign-ups for its services in the coming year. Its chief financial officer Michael Lim said while awareness about the medical use of stem cells had risen, the challenge was to improve the delivery system.

Companies holding their shareholders meeting on May 26 include Ann Joo Resources Bhd, Pos Malaysia Bhd, Kulim (M) Bhd and MMC Corp Bhd.

Questions which the Minority Shareholders Watchdog Group had raised for Ann Joo are the delay  in the commissioning of the blast furnaces and whether there would be cost overruns.

As for Pos Malaysia, MSWG wants the board to provide details on the plans it has for the large cash funds since the company is in a strong financial position.

For Kulim, MSWG said concerns would be about the independent directors whose long tenure may raise questions about their level of independence.

MMC would attract interest as questions would be asked about the board’s expectations of the performance following the acquisitions of Senai Airport Terminal Services and Aliran Ihsan Resources Bhd this year.

      Print
      Text Size
      Share