Tuesday, November 9, 2010

#Stocks to watch:* F&N, Changhuat, Masterskill, Dayang, AZRB

KUALA LUMPUR: The FBM KLCI, which closed at an all-time high of 1,519.84on Monday, could take a breather on Tuesday after Wall Street retreated from a two-year high.

Key US indices slipped from a two-year high on Monday, weighed down by financial stocks and a stronger dollar.

The Dow Jones industrial average was down 37.24 points, or 0.33%t, at 11,406.84. The Standard & Poor's 500 Index was down 2.60 points, or 0.21%, at 1,223.25. The Nasdaq Composite Index was up 1.07 points, or 0.04%, at 2,580.05.

The broad S&P 500 has risen five straight weeks, supported by the Federal Reserve's plan to buy $600 billion of Treasuries to lower interest rates and reinvigorate a sluggish economy.

Stocks to watch on Tuesday include Fraser & Neave Holdings Bhd's (FNHB), Changhuat Corp Bhd, Masterskill Education Group Bhd, Dayang Enterprise Bhd and AHMAD ZAKI RESOURCES BHD [] (AZRB).

FNHB's fourth quarter earnings surged to RM462.3 million from RM61.08 million a year ago, following exceptional gains of RM382 million from the divestment of its glass container business.

FNHB's board recommended a final single tier dividend of 38 sen per share and declared a special interim dividend of RM1.10 per share. This special interim dividend totaling RM393 million will be paid on Jan 6.

Changuat submitted its outstanding annual audited financial statements for financial year ended June 30, 2010 to Bursa Malaysia Securities Bhd on Monday. Following the latest development, its securities will not face suspension.

The Edge FinancialDaily reports after JCY International Bhd's shares sank in July and August following a labour strike and concerns over the outlook for the hard disk drive industry; it is now the turn of education provider Masterskill.

Masterskill, which fell to a fresh low of RM2.25 in intra-day trade, managed to end the day off its low. It lost seven sen to RM2.33.

Dayang Enterprise's third quarter earnings doubled to RM22.63 million from RM11.03 million a year ago due to higher value of work orders received and performed.

It also proposed a one-for-four bonus issue of 88 million new shares and also a renounceable rights issue of 110 million new shares on the basis of one rights share for every four shares held.

The proposed rights issue is expected to raise RM110 million based on the indicative issue price of RM1 per rights share. The proceeds would be used as working capital.

AZRB is selling its 21.26% stake in Eastern Pacific Industrial Corporation Bhd (EPIC) for RM111.5 million cash consideration to Lembaga Tabung Amanah Warisan Negeri Terengganu.

The proposed disposal will result in an estimated gain on disposal of approximately RM11.5 million at group level based on the financial results as at June 30, 2010.


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