Thursday, August 26, 2010

#Stocks to watch:* PPB, Sime, IJM, Lion Industries

KUALA LUMPUR: Key markets may trade cautiously on Thursday, Aug 26 despite the marginal improvement on Wall Street overnight which saw some bargain hunting emerging for oversold stocks.

US stocks staged a comeback on bargain hunting after suffering steep early losses on disappointing economic data on Wednesday, while the yen pulled back from a 15-year high on mounting speculation Japanese authorities may intervene to stem the currency's rise.

The Dow Jones industrial average was up 19.61 points, or 0.20%, at 10,060.06. The Standard & Poor's 500 Index was up 3.46 points, or 0.33%, at 1,055.33. The Nasdaq Composite Index was up 17.78 points, or 0.84%, at 2,141.54.

Stocks to watch on Thursday include PPB GROUP BHD [], SIME DARBY BHD [], IJM Corp Bhd and Lion Industries Bhd.

PPB which released its earnings on Wednesday, announced a special single tier dividend of 65 sen per share and an interim single tier dividend of five sen per share for the financial year ending Dec 31, 2010. The ex-date is Sept 8.

Sime Darby will release its fourth quarter results and CIMB Research forecast net profit for FY ended June 30, 2010 to be RM2.616 billion and maintained Neutral recommendation and target price of RM8.15 in recent report. Its forecast assumed no more provisions in 4Q.

Meanwhile, The Edge FinancialDaily reports that IJM Corporation which already has an order book of RM3.6 billion is looking to add another RM2 billion worth of jobs into its stable in the current financial year ending March 31, 2011.

IJM Corp posted a 27% increase in earnings at RM90.05 million for the first quarter ended June 30, 2010 compared with net profit of RM70.82 million a year ago, despite lower earnings from the CONSTRUCTION [] division.

Operating revenues were RM986.08 million, down 15.1% from RM 1.16 billion a year ago. Earnings per share were 6.76 sen versus 5.39 sen.

Lion Industries Bhd staged a turnaround in its financial performance for the financial year ended June 30, 2010, recording net profit of RM363.45 million compared with net loss of RM278.29 million in FY09.

Revenue rose 17% to RM5.18 billion compared with RM4.42 billion.'' Net asset per share was RM3.78.

Axiata Group Bhd's net profit for the second quarter ended June 30, 2010 (2QFY10) rose 9.5% to RM576.81 million from RM526.83 million a year earlier driven by higher profit contribution from Celcom Axiata Bhd in Malaysia and Dialog Axiata PLC in Sri Lanka as well as a one-off gain on disposal of shares in PT XL Axiata Tbk (XL) in Indonesia.

The Edge FinancialDaily also reported that in yet another move that signals more mergers and acquisitions in the food industry, Fraser and Neave Holdings Bhd (F&N) will take up a 23.08% stake in COCOALAND HOLDINGS BHD [], sources say.

Cocoaland is Southeast Asia's largest producer of fruit gummies and one of Malaysia's leading manufacturers of snacks and chocolate products.

F&N and Cocoaland shares are suspended for the announcement.

Other companies which are due to release their earnings on Thursday include CIMB Group Holdings Bhd, Nestle, Mah Sing, SUNRISE BHD [], Bintulu Port and Cocoaland.

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