Tuesday, May 31, 2011

Stocks to watch* Tenaga, Maxis, Axiata, Brem, Proton, Malayan Flour Mills

KUALA LUMPUR: Investors' interest would mainly focus on TENAGA NASIONAL BHD [] on Tuesday, May 31, as well as telcos Maxis Bhd and Axiata Bhd that would be announcing their quarterly earnings.

With most heavyweights already having announced their financial results, the market will look toward Tenaga and the telcos for some support today.

Tenaga would be resuming trade at 9am on May 31 after having requested for a trading halt ahead of the announcement of the electricity and gas tariff hikes by the government yesterday.

Also in focus could be companies in the building materials sector, as well as rubber glove makers for which electricity accounts for cost of between 8%-18% and 1%-4% respectively.

Tenaga has been allowed by the government to increase its base tariff by 2%.

As a result, average tariff will increase by 7.12%; industrial consumers and commercial users will see an average hike of 8.3%, but Tenaga said there would be no increase to about 75% of households.

Meanwhile, Maxis and Axiata would be announcing their financial results for the first quarter ended March 31.

Brem Holding Bhd net profit for the fourth quarter ended March 31, 2011 surged to RM26.72 million from RM2.12 million a year earlier, due mainly to the reversal of allowance for impairment of RM21.5 million.

The company proposed a gross dividend of five sen per share for the financial year ended March 31.

Malayan Flour Mills could see further trading interest today after it proposed a share split involving the subdivision of every one existing ordinary share of RM1 each in the company into two new ordinary shares of 50 sen each.

The company also proposed the declaration and payment of special gross dividend of 62 sen per subdivided to its shareholders.

Proton unit Group Lotus plc has won the right to use the name 'Lotus' within Formula 1, and entitled to race in its historic black and gold livery.

Proton said the Chancery Division of the English High Court had on last Friday, May 27 had also ruled that 1MRT was in breach of the Licence granted to them by Group Lotus to race in Formula 1 under the name Lotus Racing and had awarded Group Lotus damages in respect of that breach.

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