KUALA LUMPUR: Markets could continue to see cautious trade on Friday, May 6, with focus on banks after Bank Negara Malaysia raised the overnight policy rate (OPR) and statutory reserve requirement (SRR).
On Thursday, blue chips extended their losses for the fifth day as investors stayed on the sidelines in line with key regional markets. Trading volume had declined ahead of expectations of an increase in the OPR and SRR and also lack of fresh positive external news.
After market close, Bank Negara Malaysia raised the OPR by 25 basis points to 3% during its Monetary Policy Committee (MPC) meeting on Thursday. The central bank said the floor and ceiling rates of the corridor for the OPR were correspondingly raised to 2.75% and 3.25% respectively.
Economists said the higher OPR would see banks adjusting the base lending rates which could hurt lending as consumers and businesses turned cautious in anticipation of further hike.
Analysts said timing was ahead of expectation, but overall, the market expected about 50 basis points increase for this year.
'Market neutral, and impact on economy is only moderate (that is, it won't materially slow down consumption and business dealings). Slightly positive for banks in terms of widening net interest margins,' said the research head of a foreign research house.
Stocks which could see trading interest include banks, Fraser & Neave Holdings Bhd, POS MALAYSIA BHD [] and Daibochi Plastic and Packaging Industry Bhd.
Fraser & Neave posted net profit of RM131.98 million in the second quarter ended March 31, 2011 versus RM85.23 million a year ago, boosted by the sale of a college building.
Revenue was RM1 billion compared with RM872.09 million. Earnings per share were 36.80 sen versus 23.90 sen. It declared a special interim single tier dividend of 15 sen per share and an interim single tier dividend of 20 sen per share.
Pos Malaysia has viewed TRICUBES BHD []'s venture to send government notices via email as a threat and it would explore ways how it could participate in the project.
'We know that this will be a significant threat to the physical mail business,' said Pos Malaysia CEO and group managing director Datuk Syed Faiusal Albar. He said that government mail amounted to RM20 million of its annual revenue.
Daibochi posted net profit of RM4.6 million in the first quarter ended March 31, 2011, down 7.4% from RM5 million a year ago as raw material prices rose.
The flexible packaging solutions provider said on Thursday, May 5 that group revenue rose 13.4% in the 1Q to RM67.7 million, from RM59.7 million a year ago.
Daibochi said the group's property segment contributed RM2.6 million in revenue to 1Q11 compared with only RM500,000 a year ago.
On Thursday, blue chips extended their losses for the fifth day as investors stayed on the sidelines in line with key regional markets. Trading volume had declined ahead of expectations of an increase in the OPR and SRR and also lack of fresh positive external news.
After market close, Bank Negara Malaysia raised the OPR by 25 basis points to 3% during its Monetary Policy Committee (MPC) meeting on Thursday. The central bank said the floor and ceiling rates of the corridor for the OPR were correspondingly raised to 2.75% and 3.25% respectively.
Economists said the higher OPR would see banks adjusting the base lending rates which could hurt lending as consumers and businesses turned cautious in anticipation of further hike.
Analysts said timing was ahead of expectation, but overall, the market expected about 50 basis points increase for this year.
'Market neutral, and impact on economy is only moderate (that is, it won't materially slow down consumption and business dealings). Slightly positive for banks in terms of widening net interest margins,' said the research head of a foreign research house.
Stocks which could see trading interest include banks, Fraser & Neave Holdings Bhd, POS MALAYSIA BHD [] and Daibochi Plastic and Packaging Industry Bhd.
Fraser & Neave posted net profit of RM131.98 million in the second quarter ended March 31, 2011 versus RM85.23 million a year ago, boosted by the sale of a college building.
Revenue was RM1 billion compared with RM872.09 million. Earnings per share were 36.80 sen versus 23.90 sen. It declared a special interim single tier dividend of 15 sen per share and an interim single tier dividend of 20 sen per share.
Pos Malaysia has viewed TRICUBES BHD []'s venture to send government notices via email as a threat and it would explore ways how it could participate in the project.
'We know that this will be a significant threat to the physical mail business,' said Pos Malaysia CEO and group managing director Datuk Syed Faiusal Albar. He said that government mail amounted to RM20 million of its annual revenue.
Daibochi posted net profit of RM4.6 million in the first quarter ended March 31, 2011, down 7.4% from RM5 million a year ago as raw material prices rose.
The flexible packaging solutions provider said on Thursday, May 5 that group revenue rose 13.4% in the 1Q to RM67.7 million, from RM59.7 million a year ago.
Daibochi said the group's property segment contributed RM2.6 million in revenue to 1Q11 compared with only RM500,000 a year ago.
No comments:
Post a Comment