KUALA LUMPUR: Key regional markets including Bursa Malaysia are expected to see heavy downside pressure on Wednesday, March 2 after the sharp overnight fall on Wall Street following the surge in crude oil prices.
Reuters reported concerns that rising oil prices could hurt economic recovery prompted investors on Tuesday to sell stocks and hedge against further declines.
The CBOE Volatility Index VIX, Wall Street's so-called fear gauge, jumped 14.5 percent to 21.01 on growing uncertainty about oil. The index measures the cost of using options as insurance against a decline in the S&P 500 index.
The Dow Jones industrial average fell 169.38 points, or 1.39 percent, at 12,056.96. The Standard & Poor's 500 Index dropped 21.04 points, or 1.59 percent, to 1,306.18. The Nasdaq Composite Index lost 44.86 points, or 1.61 percent, to 2,737.41.
At Bursa Malaysia, stocks to watch on Wednesday are oil and gas companies and related services following the sustained high oil price and the government's move to expand the exploration activities.
Also in focus would be GUAN CHONG BHD [], ALAM MARITIM RESOURCES BHD [], KYM HOLDINGS BHD [], CypARK RESOURCES BHD [] and PROTON HOLDINGS BHD [].
Guan Chong Bhd is allocating about RM120 million to build its cocoa-grinding plant in Batam, Indonesia. The plant, with an annual capacity of 120,000 tonnes, will more than double the company's grinding capacity to 200,000 tonnes from 80,000 tonnes.
Alam Maritim Resources Bhd has been awarded an extension of contract to provide one accommodation work barge for about RM70.52 million.
The contract extension is for 21 months from April 12, 2011 to January 2013, with a further option to extend for an additional year.
Alam Maritim said the contract sum of about RM70.52 million included costs of catering, lodging and crane hire.
KYM said the Boston Consulting Group will prepare a strategic concept plan for the development of a heavy industrial park in Bagan Datoh, Perak.
On Dec 1, 2010, KYM and Perbadanan Kemajuan Negeri Perak had signed a memorandum of understanding to work together to develop the industrial park.
Cypark Resources Bhd, whose shares rallied on Tuesday, could see continued trading interest as investors ride on its solid waste management prospects.
Cypark, had in its fourth quarter ended Oct 30, 2010 reported net profit of RM5.38 million while for the financial year, its earnings were RM20.42 million.
The company had said in December, 2010 that it expected its revenue to increase as the government emphasised on solid waste management under the National Strategic Plan for Waste Management and related regulations/ initiatives.
Meanwhile, The Edge FinancialDaily reports the CONSTRUCTION [] industry may soon see a major change in the way non-payment issues are resolved.
Issues of cash flow shortage or non-payment of progress billings that often plague the industry may be reduced in the future when a bill to regulate the payment is passed by Parliament.
The Edge FinancialDaily also reports that Malaysia's latest inflation figure would have been higher than reported had it not been for a change in weighting for several key items on the consumer price index (CPI).
Proton Holdings Bhd shares have fallen over the past two trading days after reporting losses due to its involvement to restructure Lotus Group International and higher branding costs.
Proton adviser and former prime minister Tun Dr Mahathir Mohamad says the national car maker has enough funds to inject into Lotus if necessary.
Reuters reported concerns that rising oil prices could hurt economic recovery prompted investors on Tuesday to sell stocks and hedge against further declines.
The CBOE Volatility Index VIX, Wall Street's so-called fear gauge, jumped 14.5 percent to 21.01 on growing uncertainty about oil. The index measures the cost of using options as insurance against a decline in the S&P 500 index.
The Dow Jones industrial average fell 169.38 points, or 1.39 percent, at 12,056.96. The Standard & Poor's 500 Index dropped 21.04 points, or 1.59 percent, to 1,306.18. The Nasdaq Composite Index lost 44.86 points, or 1.61 percent, to 2,737.41.
At Bursa Malaysia, stocks to watch on Wednesday are oil and gas companies and related services following the sustained high oil price and the government's move to expand the exploration activities.
Also in focus would be GUAN CHONG BHD [], ALAM MARITIM RESOURCES BHD [], KYM HOLDINGS BHD [], CypARK RESOURCES BHD [] and PROTON HOLDINGS BHD [].
Guan Chong Bhd is allocating about RM120 million to build its cocoa-grinding plant in Batam, Indonesia. The plant, with an annual capacity of 120,000 tonnes, will more than double the company's grinding capacity to 200,000 tonnes from 80,000 tonnes.
Alam Maritim Resources Bhd has been awarded an extension of contract to provide one accommodation work barge for about RM70.52 million.
The contract extension is for 21 months from April 12, 2011 to January 2013, with a further option to extend for an additional year.
Alam Maritim said the contract sum of about RM70.52 million included costs of catering, lodging and crane hire.
KYM said the Boston Consulting Group will prepare a strategic concept plan for the development of a heavy industrial park in Bagan Datoh, Perak.
On Dec 1, 2010, KYM and Perbadanan Kemajuan Negeri Perak had signed a memorandum of understanding to work together to develop the industrial park.
Cypark Resources Bhd, whose shares rallied on Tuesday, could see continued trading interest as investors ride on its solid waste management prospects.
Cypark, had in its fourth quarter ended Oct 30, 2010 reported net profit of RM5.38 million while for the financial year, its earnings were RM20.42 million.
The company had said in December, 2010 that it expected its revenue to increase as the government emphasised on solid waste management under the National Strategic Plan for Waste Management and related regulations/ initiatives.
Meanwhile, The Edge FinancialDaily reports the CONSTRUCTION [] industry may soon see a major change in the way non-payment issues are resolved.
Issues of cash flow shortage or non-payment of progress billings that often plague the industry may be reduced in the future when a bill to regulate the payment is passed by Parliament.
The Edge FinancialDaily also reports that Malaysia's latest inflation figure would have been higher than reported had it not been for a change in weighting for several key items on the consumer price index (CPI).
Proton Holdings Bhd shares have fallen over the past two trading days after reporting losses due to its involvement to restructure Lotus Group International and higher branding costs.
Proton adviser and former prime minister Tun Dr Mahathir Mohamad says the national car maker has enough funds to inject into Lotus if necessary.
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