#Stocks to watch:* UMW, LPI, plantations

Thursday 25 Apr 2024

KUALA LUMPUR: The market could continue to see lacklustre trade on July 7 following worries about the health of the economy but external news including the better overnight close on Wall Street could lift sentiment.

The 30-stock FBM KL Composite Index, which replaced the 100-stock KL Composite Index, did not attract much attention. It closed nearly seven points lower to 1,065.8 and volume was thin with 762 million units done.

Concerns about the economy, which is expected to have entered into a recession in the second quarter, and weaker corporate earnings dampened investors’ interest.

Stocks to watch include Southern Acids (M), UMW, LPI and plantation stocks. Oil and gas counters could also see some trading activity despite the weaker outlook for oil, which hinges on world global economic outlook. Oil for August delivery touched a five-week low, tumbling US$2.68, or 4%, to settle at US$64.05 per barrel on Monday.

Crude palm oil futures fell RM34 to RM2,136, the lowest since April 8 this year. The downward trend in the CPO futures would dampen investors’ interest in plantation stocks.

In Southern Acids, the company was served with ex-parte order for the appointment of Messrs Ernst & Young as interim receivers and managers.

According to a filing to Bursa, the petition was filed by two shareholders, one of whom is an executive director of the company.

UMW Holdings subsidiary’s US$170 million (RM565.51 million) contract to provide a drilling rig to PCPP Operating Company Sdn Bhd (PCPP), off Sarawak has been terminated.

UMW said on July 6 it was notified the contract would not be implemented by PCPP, which comprised of Petronas Carigali (Malaysia), Petrovietnam (Vietnam) and Pertamina (Indonesia).

General insurer LPI Capital declared an interim dividend of 26.25 sen per share for the second quarter ended June 30. Its net profit rose 27% year-on-year to RM22.74 million, from RM17.9 million a year ago.

LPI's interim dividend of 26.25 sen per share consisted of seven sen less tax and 21 sen single-tier dividend.

In Maybank, Permodalan Nasional Bhd (PNB) raised its shareholding to 447.59 million shares after the recent acquisition of six million shares. PNB’s shareholding had increased to 6.32% after acquiring the shares from June 26 to 29.

A separate filing showed the Employees Provident Fund Board (EPF) had disposed of two million Maybank shares on June 29 and another 2.01 million shares the next day. After the recent transactions, the EPF’s shareholding was reduced to 866.03 million shares or 12.23%.

Text Size