Business & Markets 2012
Written by Ho Wah Foon of theedgemalaysia.com
Sunday, 18 November 2012 19:14
KUALA LUMPUR (Nov 18): The local stock market, which has been sold down along with major markets since Nov 6, may rise on Monday in tandem with 0.37%-0.57% gains seen in US stocks last Friday.
The benchmark FBM KLCI may also be cheered by news that the third quarter (3Q) gross domestic product (GDP) growth was higher than projected. Last Friday, Bank Negara Malaysia (BNM) announced that 3Q growth was 5.2% - higher than the consensus 4.7% - on strong domestic demand.
Prime Minister Datuk Seri Najib Razak's announcement last Friday of 20 projects that could lure investments totalling RM26 billion to create 64,282 jobs by 2020 could be another booster.
The KLCI may be positive to neutral on Monday. The US fiscal cliff problem needs to be sorted out. But we have our own fiscal cliff too, with the government spending so much money to beef up the economy, a senior investment analyst told theedgemalaysia.com.
Last Friday, FBM KLCI closed 0.15% or 2.4 points lower at 1,629.28 points on concerns over the US fiscal cliff and European debt crisis.
According to Reuters, US stock markets ended higher last Friday on hopes that politicians would find common ground to steer clear of the "fiscal cliff" that would hurt the US economy, while escalating tensions in the Middle East boosted oil prices.
The Dow Jones Industrial Average added 45.93 points, or 0.37%, to 12,588.31. The Standard & Poor's 500 Index rose 6.55 points, or 0.48%, to 1,359.88. The Nasdaq Composite Index gained 16.19 points, or 0.57%, to 2,853.13.
Stocks to watch
Based on news flows, the stocks to watch on Monday may include Astro Malaysia Holdings Bhd; MALAYSIAN RESOURCES CORP []oration Bhd (MRCB); TANJUNG OFFSHORE BHD []; MAH SING GROUP BHD []; and PANTECH GROUP HOLDINGS BHD [].
Astro said a wholly-owned unit of the company has received a summons naming it as second defendant for a civil suit filed with the South Jakarta district court by PT Direct Vision against ASTRO ALL ASIA NETWORKS PLC [] (AAAN) for alleged tort.
As second defendant, Astro's 100%-owned unit Measat Broadcast Network Systems Sdn Bhd is summoned to appear before the district court on Jan 10, 2013, according to a statement by the company to Bursa Malaysia last Friday.
Astro believes the claim is in relation to on-going disputes in relation to a botched Indonesian pay-TV joint-venture that has been subject to litigation since 2008.
MRCB, teaming up with a private company, has submitted a plan to the government to build a railway line for freight trains linking Serendah to Port Klang to ease congestion at the KL Sentral area, reported The Edge weekly quoting industry executives.
The MRCB-led team could possibly secure the RM3 billion infrastructure development job in early 2013, the report added.
Tanjung Offshore posted a deeper net loss of RM6.94 million for the third quarter (3Q) ended Sep 30, 2012, against a RM429,000 net loss in the corresponding quarter in 2011.
Mah Sing may attract trading interest after Nanyang Siang Pau reported over the weekend that major Taiwanese property investors have expressed interest to purchase its PROPERTIES [] and projects.
The paper said a delegation of leading Taiwanese investors, who visited Mah Sing's projects in Kuala Lumpur, find Malaysian properties to be "relatively cheap" internationally.
Fraser & Neave Holdings Bhd (FNH) — whose Singapore-listed parent Fraser & Neave Ltd (F&N) has received competing takeover bids — may be in the limelight again after its share jumped last Friday.
The battle for control of F&N of Singapore may spill over to its listed subsidiary in Malaysia, analysts said.
Pantech's executive director Adrian Tan told The Edge weekly that the company is expecting an increase in orders given that national oil company Petroliam Nasional Bhd (Petronas) has allocated RM170 billion in capital expenditure to boost local oil and gas production over the next five years.
Tan also said Pantech, which has already seen its earnings surge in recent quarters, will benefit from new upstream local and international projects due to increase in demand for pipes and fittings used in platforms and refiners.