Tuesday, May 24, 2011

#Stocks to watch:* Quality Concrete, PBA, Ibraco, QL Resources

KUALA LUMPUR: Regional markets including Malaysia will continue to see selling pressure on Tuesday, May 24 on growing worries about the contagion effect of the mounting Europe debt crisis.

In US, stocks closed at their lowest levels in a month on Monday in a sign of increasing doubt that equity markets can weather recent weakness in global manufacturing and demand.

Reuters reported that negative ratings actions on Greece and Italy and regional election results in Spain raised concerns about the deepening of the euro zone's debt problems. Investors worry that voter rebellions against austerity plans could put some government debt at risk of default.

The euro hit a two-month low against the U.S. currency.

The Dow Jones industrial average'' dropped 130.78 points, or 1.05 percent, to 12,381.26. The Standard & Poor's 500 lost 15.90 points, or 1.19 percent, to 1,317.37. The Nasdaq Composite fell 44.42 points, or 1.58 percent, to 2,758.90.

Stocks which could see trading interest on Tuesday, May 24 following fresh corporate developments include QUALITY CONCRETE HOLDINGS BHD [], PBA HOLDINGS BHD [], IBRACO BHD [] and QL RESOURCES BHD [].

PUNCAK NIAGA HOLDINGS BHD [] and its partner Quality Concrete Holdings Bhd signed a contract for a RM667.32 million rural water supply project in Sarawak.

Puncak said the 40:60 Konsortium Puncak Niaga Holdings Bhd-Quality Concrete had signed the contract to supply rural water from 2010 to 2012. The completion period is Dec 31, 2012.

PBA's net profit surged 105% to RM11.03 million from RM5.37 million a year ago mainly due to the improved sale of water revenue from trade consumers.

Its revenue rose 15.3% to RM56.31 million from RM48.85 million while earnings per share were 3.33 sen compared with 1.62 sen.

Bursa Malaysia Securities has uplifted Ibraco Bhd from the Practice Note 17 classification with effect from Tuesday, May 24.

With the completion of the regularisation plan, the company has regularised its financial condition and no longer triggered any of the criteria under PN17 of the Main Market Listing Requirements

Bursa Securities had also approved Ibraco's waiver application to comply with the requirement to record a net profit in two consecutive quarterly results immediately upon the implementation of the regularisation plan.

QL Resources Bhd posted net profit of RM31.55 million in the fourth quarter ended March 31, 2011, up 19.3% from RM26.44 million a year ago.

Revenue rose 21.6% to RM502.58 million from RM413.02 million a year ago. Earnings per share were 3.86 sen versus 3.38 sen.

QL Resources Bhd posted net profit of RM31.55 million in the fourth quarter ended March 31, 2011, up 19.3% from RM26.44 million a year ago.

It said on Monday, May 23 that revenue rose 21.6% to RM502.58 million from RM413.02 million a year ago. Earnings per share were 3.86 sen versus 3.38 sen.

Pretax profit was RM40.45 million, of which integrated livestock farming accounted for RM27.62 million,'' marine product manufacturing RM10.48 million and palm oil activities RM2.34 million.

For the financial year ended March 31, 2011, earnings rose to RM124.49 million compared with RM106.91 million. Revenue rose to RM1.77 billion from RM1.47 billion.

Crane manufacturer FAVELLE FAVCO BHD [] reported a 13.5% increase in earnings to RM3.86 million in the first quarter ended March 31 from RM3.40 million a year ago mainly due to higher sales.

Revenue rose 13.6% to RM85.18 million from RM74.95 million while earnings per share were 2.18 sen versus 1.97 sen. It had cash and cash equivalents of RM103.03 million as at March 31.

As at May 19, 2011, outstanding order book of the group is RM496.4 million of which majority is from oil and gas cranes for the offshore oil and gas exploration and production activities.

MITRAJAYA HOLDINGS BHD [] has secured a RM46.40 million contract to build an eight-story private hospital in Rawang. It accepted the letter of award from

Rawang Specialist Hospital Sdn Bhd for the contract.

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