KUALA LUMPUR: ''Investors are expected to stay cautious this week, starting Nov 15 after the sharp falls in the past two trading days as fears of rising interest rates in China accelerated profit taking.
Wall Street ended a five-week winning steak on Friday, Nov 12 as investors booked profits and reassessed their bullish positions in equities.
Reuters reported investors worried tighter credit in China would curb demand for commodities, driving down energy and natural resource stocks. The two sectors were the biggest drag on the S&P.
A string of global worries, including debt problems in Ireland, have prompted investors to reassess their positions.
The Dow Jones industrial average fell 90.52 points, or 0.80%, to end at 11,192.58. The Standard & Poor's 500 Index slid 14.33 points, or 1.18%, to 1,199.21. The Nasdaq Composite Index dropped 37.31 points, or 1.46%, to 2,518.21.
At Bursa Malaysia, the FBM KLCI fell below the crucial 1,500 level, which is now the resistance level as investors took profit on Thursday and Friday. On Wednesday, the KLCI had hit an all-time intra-day high of 1,531.
Stocks to watch on Monday are companies with fresh corporate news including BANDAR RAYA DEVELOPMENTS BHD [] (BDRB), TAN CHONG MOTOR HOLDINGS BHD [], Pacific & Orient Bhd and MALAYAN BANKING BHD [].
BDRB is teaming up with Country Heights Land Sdn Bhd (CHLSB) to undertake a housing project costing RM481 million in Pekan Baru Sungai Besi, Selangor.
Its projected gross development value (GDV) would be RM652 million and the projected gross development profit at RM170 million.
Meanwhile, Tan Chong Motor will invest RM285.0 million to manufacture and assemble luxury passenger cars at the Kota Kinabalu Industrial Park in Sabah.
It had received a government approval to manufacture and assemble luxury passenger vehicles and commercial vehicles. The approval is for luxury passenger cars with engine capacities of 1,800cc and above, at on the road price of not less than RM150,000.
Meanwhile, Pacific & Orient called off the preliminary negotiations for the proposed divestment of an equity interest in Pacific & Orient Insurance Co. Bhd to Prudential Holdings Ltd. It had informed Bank Negara Malaysia the proposed divestment discussions had been discontinued.
Maybank earnings were RM1.028 billion in the first quarter ended Sept 30, 2010, up 16.6% from RM881.80 million a year ago, underpinned by improvements in all the divisions, including its Indonesian operations.
Its revenue rose to RM5 billion from RM4.56 billion. Earnings per share were 14.53 sen versus 12.46 sen.
Maybank's ''net interest income increased by 9% or 146.9 million in the first quarter ended Sept 30, due to improvements in the group's operations from higher net interest income margins in Malaysia arising from increases in the overnight policy rate and expansion of market in Indonesia.
Income from Islamic Banking operations decreased by RM43.3 million or 11.3% to RM338.2 million due to higher provision for profit equalisation reserves in the Islamic business but mitigated by increase in growth in assets which increased gross income in Islamic business.
Maybank expects its performance for the financial year ending June 30, 2011 to be better than the last financial year and on track to meet the targeted 14% return on equity.
Wall Street ended a five-week winning steak on Friday, Nov 12 as investors booked profits and reassessed their bullish positions in equities.
Reuters reported investors worried tighter credit in China would curb demand for commodities, driving down energy and natural resource stocks. The two sectors were the biggest drag on the S&P.
A string of global worries, including debt problems in Ireland, have prompted investors to reassess their positions.
The Dow Jones industrial average fell 90.52 points, or 0.80%, to end at 11,192.58. The Standard & Poor's 500 Index slid 14.33 points, or 1.18%, to 1,199.21. The Nasdaq Composite Index dropped 37.31 points, or 1.46%, to 2,518.21.
At Bursa Malaysia, the FBM KLCI fell below the crucial 1,500 level, which is now the resistance level as investors took profit on Thursday and Friday. On Wednesday, the KLCI had hit an all-time intra-day high of 1,531.
Stocks to watch on Monday are companies with fresh corporate news including BANDAR RAYA DEVELOPMENTS BHD [] (BDRB), TAN CHONG MOTOR HOLDINGS BHD [], Pacific & Orient Bhd and MALAYAN BANKING BHD [].
BDRB is teaming up with Country Heights Land Sdn Bhd (CHLSB) to undertake a housing project costing RM481 million in Pekan Baru Sungai Besi, Selangor.
Its projected gross development value (GDV) would be RM652 million and the projected gross development profit at RM170 million.
Meanwhile, Tan Chong Motor will invest RM285.0 million to manufacture and assemble luxury passenger cars at the Kota Kinabalu Industrial Park in Sabah.
It had received a government approval to manufacture and assemble luxury passenger vehicles and commercial vehicles. The approval is for luxury passenger cars with engine capacities of 1,800cc and above, at on the road price of not less than RM150,000.
Meanwhile, Pacific & Orient called off the preliminary negotiations for the proposed divestment of an equity interest in Pacific & Orient Insurance Co. Bhd to Prudential Holdings Ltd. It had informed Bank Negara Malaysia the proposed divestment discussions had been discontinued.
Maybank earnings were RM1.028 billion in the first quarter ended Sept 30, 2010, up 16.6% from RM881.80 million a year ago, underpinned by improvements in all the divisions, including its Indonesian operations.
Its revenue rose to RM5 billion from RM4.56 billion. Earnings per share were 14.53 sen versus 12.46 sen.
Maybank's ''net interest income increased by 9% or 146.9 million in the first quarter ended Sept 30, due to improvements in the group's operations from higher net interest income margins in Malaysia arising from increases in the overnight policy rate and expansion of market in Indonesia.
Income from Islamic Banking operations decreased by RM43.3 million or 11.3% to RM338.2 million due to higher provision for profit equalisation reserves in the Islamic business but mitigated by increase in growth in assets which increased gross income in Islamic business.
Maybank expects its performance for the financial year ending June 30, 2011 to be better than the last financial year and on track to meet the targeted 14% return on equity.
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