KUALA LUMPUR: The rally in Asian markets and Bursa saw the KL Composite Index posting its strongest gains this year, led by heavyweights like Maybank, Public Bank, BCHB and TM International.
The surge on Wall Street overnight could spur more buying interest on March 24. At Bursa Malaysia, stocks to watch include TMI, Maybank, oil and gas counters due to the oil price surge, RHB Capital and property developer YNH Property.
The March 23 rally was underpinned by the surge in oil prices and crude palm oil prices. Most importantly, US plans to offer financing for private investors to help cleanse banks of up to US$1 trillion in toxic assets were seen as crucial to unblock lending and avert a worsening US recession.
Templeton Asset Management Ltd Mark Mobius said the next “bull-market” rally has begun and there are bargains in every emerging market following a record slump in stocks.
However, Jupiter Research head Pong Teng cautioned that the flow of funds would determine if there would be a bull run.
“However, I don’t see huge funds coming to the market at this point of time. There is no leverage and investment funds are licking wounds. Hedge funds have been unable to get fresh funds.
“We might see a rally but not a bull run,” he cautioned. The recovery in Bursa was more in line with the region, he said.
TM International, which made its biggest one-day gains since September last year, saw very active trade. It is scheduled to hold media briefing after its EGM at 9.30am where several resolutions including the rights issue, name change and employee long-term incentive plan.
Maybank expects to remain profitable in FY ending June 30, 2009 notwithstanding impairment losses made in its overseas acquisitions. It wants Bank Internasional Indonesia to grow its average earnings by 25% for Maybank to break even on its RM8.2-billion acquisition. Maybank had acquired BII in 2008.
Maybank had made an impairment loss of RM242 million in the first quarter of FY09 on its acquisition of MCB Bank in Pakistan. Maybank recent share price rebound has pushed its price to book value at.
Plantation stocks would attract rising interest and this could spill over to smaller yet efficient stocks if CPO continues to hold above RM2,000 a tonne.
RHB Capital saw its single major shareholder, the Employees Provident Fund acquiring 358,800 shares on March 13 and 16, boosting its shareholding to 1.239 billion RHB Cap shares or 57.55%.
OSK Investment Research maintains neutral recommendation on the O&G sector as the rebound in crude oil price to above US$50 was mainly due to short-term fundamentals. Its top buys remained as Alam Maritim, Dialog, Kencana and Wah Seon.
In YNH Property, Datuk Dr Yu Kuan Chon, who controls 29.17% stake, stepped up his buy-back. He acquired 357,000 shares from March 17 to 23 and rhis saw his stake increase to 108.93 million shares or 29.17%.
Naim Holdings’ unit was served with two writs of summons by four plantiffs who collectively claimed about 38 acres of native customary rights over part of a parcel of land in Kuala Baram Land District, Miri.
Poh Kong Holdings has been unable to place out its shares of up to 41.03 million or 10% of share capital. The Securities Commission had on Sept 15 given it until March 24 to place out shares.