Wednesday, February 9, 2011

#Stocks to watch:* PJI, OIB, Seloga, HWGB

KUALA LUMPUR: Stocks on Bursa Malaysia may tread cautiously on Wednesday, Feb 9 after China said it would raise its benchmark one-year deposit rate by 25 basis points to 3% in a move to rein in the inflationary pressure. This was the second time in six weeks that it had raised the interest rates.

On Wall Street, the Dow notched a seventh straight day of gains on Tuesday, but light volume suggested'' that investors don't believe the more than five-month rally has the legs to keep going.

The Dow Jones industrial average was up 71.52 points, or 0.59 percent, at 12,233.15. The Standard & Poor's 500 Index was up 5.52 points, or 0.42 percent, at 1,324.57. The Nasdaq Composite Index was up 13.06 points, or 0.47 percent, at 2,797.05.

Stocks to watch on Wednesday include PJI HOLDINGS BHD [], ORIENTAL INTEREST BHD [] (OIB) and SELOGA HOLDINGS BHD []. Meanwhile, trading volume on Bursa Malaysia has surged to more than three billion units over the past two days on heavy trading of penny stocks like HO WAH GENTING BHD [] [] and Olympia Industries and traders are expected to lock in gains on mild rise in the prices.

Retail investors are advised to be cautious about these stocks due to volatile trading patterns. On Tuesday, HWGB and its warrants, which fell in active trade after surging on Monday, accounted for more than 115 million units transacted. HWGB fell 15.5 sen to 77.5 sen and HWGB-WB lost 15.5 sen to 74 sen as traders sold on news about its proposed tin mining operations.

The Edge FinancialDaily reports the government may bring forward liberalisation of auto sector industry to several years earlier than 2020, amid mounting pressure for a level playing field between national and non-national players.

The Edge FD also reports that speculation is rife MPHB may soon announce a corporate exercise involving its numbers forecast operator (NFO) Magnum Corp Bhd.

PJI secured a RM55.89-million sub-contract from IJM CONSTRUCTION [] Sdn Bhd for a college in Kedah. PJI said its unit P.J. Indah Sdn Bhd had received the letter of award from IJM for the mechanical and electrical services of Kolej Universiti Insaniah's permanent campus.

OIB'' swung into the red with losses of RM833,000 in the second quarter ended Dec 31, 2010 due to the weaker performance of its manufacturing division, when compared to net profit of RM832,000 a year ago.

Revenue rose nearly 5% to RM19.91 million compared with RM19.02 million a year ago. Loss per share was 0.98 sen compared with earnings per share of 0.92 sen.

'For the quarter under review, although revenue rose by 5%, the group's pre-tax profit (at RM81,000) reduced by 95% compared with the previous corresponding quarter(from RM1.64 million), mainly due to declining sales, high materials cost and adverse foreign exchange movement experienced by manufacturing division, while property activities remained closely intact,' it said.

OIB said the group's pre-tax profit was lower by 96% compared to preceding quarter's RM2.19 million, mainly due to further operating loss incurred by manufacturing division.

In Seloga, five out of six board members resigned from their respective positions in the midst of a boardroom tussle in the company.

KENCANA PETROLEUM BHD []'s 166.69 million new shares were placed out at RM2.38 each and raised gross proceeds of RM396.7 million. The issue price of RM2.38 was a discount of about 1.65% to the closing market price of RM2.42 on Jan 25.

1 comment:

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