Wednesday, April 27, 2011

#Stocks to watch:* Kencana, MPI, Tricubes, Sealink

KUALA LUMPUR: Blue chips on Bursa Malaysia are expected to perk up on Wednesday, April 27, encouraged by the overnight gains on Wall Street.

On Wall Street, a fresh batch of corporate results pushed U.S. stocks to their best levels since June 2008 on Tuesday, renewing optimism that profit growth will remain resilient enough to keep equities on the rise.

The S&P 500 barreled through the 1,344 level, seen as a key resistance point the benchmark index needed to surpass in order to trigger further gains.

The Dow Jones industrial average rose 115.49 points, or 0.93 percent, at 12,595.37. The Standard & Poor's 500 Index gained 11.99 points, or 0.90 percent, at 1,347.24. The Nasdaq Composite Index climbed 21.66 points, or 0.77 percent, to end at 2,847.54.

Stocks to watch at Bursa Malaysia include KENCANA PETROLEUM BHD [], MALAYSIAN PACIFIC INDUSTRIES [] Bhd (MPI), TRICUBES BHD [], SEALINK INTERNATIONAL BHD [] and YEO HIAP SENG (M) BHD [].

Kencana secured a RM208 million contract for the fabrication of a substructure for the Kebabangan northern hub development project off the coast of Sabah from Kebabangan Petroleum Operating Company (KPOC).

Under the contract, it would build and commission the substructure for the Kebabangan northern hub.

MPI reported an 81% decline in its third quarter earnings to RM5.05 million from RM27.14 million a year ago due to the strengthening of the ringgit against the US dollar and rising commodities prices.

Revenue fell 5.3% to RM334.82 million from RM353.68 million while earnings per share were 2.61 sen compared with 13.92 sen. It proposed dividend of 10 sen a share.

Tricubes Bhd is going to make a cash call to fund the controversial myemail project that will require a RM50 million investment over 10 years.

Sealink International Bhd has recommended a final single tier tax exempt dividend of 2.7 sen per share totalling RM13.50 million for the financial year ended Dec 31, 2010. The dividend entitlement date is Sept 12 and payment date Sept 28.

Yeo Hiap Seng'' plans to allocate RM30 million as capital expenditure in FY2011 following the consolidation of its Shah Alam and Petaling Jaya plants.

YHS posted net profit of RM7.63 million in the first quarter ended March 31, 2011, an increase of 36% from RM5.61 million a year ago.

Revenue was up just 0.3% to RM151.62 million from RM151.21 million. Earnings per share were 5.0 sen compared with 3.68 sen.

Sarawak State Infrastructure Development and Communication Minister, Datuk Seri Michael Manyin, said it cost RM10 million to build 1km of access road in Sarawak central region.

"It is very expensive to build roads in Sarawak due to the difficult terrain and peat soil in many places," he said.

He also said Sarawak will build another 500 km of roads in the state by the end of next year. Under the National Key Result Area (NKRA) for a three-year period beginning last year, Manyin said Sarawak was allocated RM2 billion to build roads.

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