KUALA LUMPUR: After the sharp sell-off late Friday, Dec 10, as investors turned cautious over China's move to tighten its monetary policy further, sentiment on Bursa Malaysia may show some recovery.
The late selling could be viewed as overdone while the firmer close on Wall Street could lend some support to some mild bargain hunting on Monday, Dec 13.
U.S. stocks rose on Friday, with the S&P 500 at its highest level since the week Lehman Brothers collapsed in 2008, and breaching technical levels that suggest the year-end rally will persist, according to Reuters.
The Dow Jones industrial average added 40.26 points, or 0.35%, to 11,410.32. The Standard & Poor's 500 gained 7.40 points, or 0.60%, to 1,240.40. The Nasdaq Composite rose 20.87 points, or 0.80%, to 2,637.54.
Stocks to watch on Monday include KENCANA PETROLEUM BHD [], KYM HOLDINGS BHD [], BERJAYA SPORTS TOTO BHD [] and MISC BHD []. Also in focus could be SAPURACREST PETROLEUM BHD [].
Kencana is expected to announce its 1QFY11 results on'' Monday. OSK Research forecasts better quarter-on-quarter performance and forecast earnings of RM191.9 million for FY11.
The research house is maintaining a Buy on Kencana with a higher target price of RM2.93. Kencana remains its top pick for the oil and gas sector.
KYM Holdings Bhd is going big on the development of an industrial park with the Perak State Economic Development Corporation. Plans are already under way to bring in downstream iron and steel players that are clients of Brazilian mining giant Vale International SA.
BToto saw its earnings fall 36% to 65.08 million for the second quarter ended Oct 31 from RM102.54 million a year ago as it bore the brunt of higher pool betting duty and higher prize payout.
Revenue slipped 1.3% to RM845.79 million from RM857.10 million a year ago. Earnings per share were 4.87 sen versus 7.62 sen. It declared a dividend of four sen a share.
However, the recent move by the Finance Ministry to allow numbers forecast operators to reduce their payout could help shore up BToto's bottomline. The prizes for the games would be reduced from RM200 per RM1 bet to RM180 per RM1 bet. The revised prize structure, which would take effect from Dec 15, would have a positive impact on their earnings.
MISC could continue to see some selling pressure after a research house lowered its outlook for the company on concerns about weakening petroleum tanker rates in 2011.
MISC closed down 31 sen to RM8.14 with 2.07 million shares done on Friday. Hwang DBS Vickers Research (HDBSVR) said in its research note that petroleum tanker rates may weaken in 2011, although narrower container losses might cushion the impact. It cut the FY12F-13F earnings by 13%-17% but expected stable income from LNG and non-shipping units should support earnings.
SapuraCrest posted profit attributable to the parent of RM54.84 million for the third quarter ended Oct 31, up a marginal 2.6% from RM53.44 million ago. The lower earnings were mainly due to a weaker US dollar which impacted its drilling division's financial performance and the lower activities in marine services division but mitigated by the higher activities in the installation of pipeline and facilities (IPF) division.
The late selling could be viewed as overdone while the firmer close on Wall Street could lend some support to some mild bargain hunting on Monday, Dec 13.
U.S. stocks rose on Friday, with the S&P 500 at its highest level since the week Lehman Brothers collapsed in 2008, and breaching technical levels that suggest the year-end rally will persist, according to Reuters.
The Dow Jones industrial average added 40.26 points, or 0.35%, to 11,410.32. The Standard & Poor's 500 gained 7.40 points, or 0.60%, to 1,240.40. The Nasdaq Composite rose 20.87 points, or 0.80%, to 2,637.54.
Stocks to watch on Monday include KENCANA PETROLEUM BHD [], KYM HOLDINGS BHD [], BERJAYA SPORTS TOTO BHD [] and MISC BHD []. Also in focus could be SAPURACREST PETROLEUM BHD [].
Kencana is expected to announce its 1QFY11 results on'' Monday. OSK Research forecasts better quarter-on-quarter performance and forecast earnings of RM191.9 million for FY11.
The research house is maintaining a Buy on Kencana with a higher target price of RM2.93. Kencana remains its top pick for the oil and gas sector.
KYM Holdings Bhd is going big on the development of an industrial park with the Perak State Economic Development Corporation. Plans are already under way to bring in downstream iron and steel players that are clients of Brazilian mining giant Vale International SA.
BToto saw its earnings fall 36% to 65.08 million for the second quarter ended Oct 31 from RM102.54 million a year ago as it bore the brunt of higher pool betting duty and higher prize payout.
Revenue slipped 1.3% to RM845.79 million from RM857.10 million a year ago. Earnings per share were 4.87 sen versus 7.62 sen. It declared a dividend of four sen a share.
However, the recent move by the Finance Ministry to allow numbers forecast operators to reduce their payout could help shore up BToto's bottomline. The prizes for the games would be reduced from RM200 per RM1 bet to RM180 per RM1 bet. The revised prize structure, which would take effect from Dec 15, would have a positive impact on their earnings.
MISC could continue to see some selling pressure after a research house lowered its outlook for the company on concerns about weakening petroleum tanker rates in 2011.
MISC closed down 31 sen to RM8.14 with 2.07 million shares done on Friday. Hwang DBS Vickers Research (HDBSVR) said in its research note that petroleum tanker rates may weaken in 2011, although narrower container losses might cushion the impact. It cut the FY12F-13F earnings by 13%-17% but expected stable income from LNG and non-shipping units should support earnings.
SapuraCrest posted profit attributable to the parent of RM54.84 million for the third quarter ended Oct 31, up a marginal 2.6% from RM53.44 million ago. The lower earnings were mainly due to a weaker US dollar which impacted its drilling division's financial performance and the lower activities in marine services division but mitigated by the higher activities in the installation of pipeline and facilities (IPF) division.
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