Stocks to watch: GLCs, SelProp, Vastalux, NSTP, UEMLand - Edgedaily

Sunday, September 27, 2009

KUALA LUMPUR: Market sentiment this week is expected to stay lacklustre in the absence of fresh positive corporate news, expect for several companies, while the continued losses on Wall Street are unlikely to see investors taking fresh positions.
On Friday, US stocks fell for a third straight day as investors stayed cautious following disappointing housing and durable goods data and concerns about TECHNOLOGY spending.

Reuters reports the rally in US stocks, which stumbled in recent days on worries about the economic recovery and continued government stimulus, will be tested this week, by crucial data on growth and jobs.

Data due out are September non-farm payrolls, the final reading of second-quarter gross domestic product and several other big economic reports.


There is concern that the rally in stocks, with the Standard & Poor's 500 index up about 54% since early March, could be fizzling out.

Meanwhile, CIMB Equities Research is maintaining an overweight stance on Malaysia following potential share placements by government-linked investment companies including Khazanah Nasional.

The research house said such corporate exercises would be a win-win move for Malaysia as they would increase free float and liquidity for government-linked companies (GLCs). The GLCs include Malaysian Airline System, PLUS Expressways, UEM Land, Pharmaniaga while Khazanah has also substantial stakes in Proton, Axiata, Telekom and Time Engineering.


UEM Land Weekly Chart



Plus Expressway Weekly Chart


"Placements could also help renew foreign investor interest and drive a re-rating of the market. We remain bullish on Malaysia and maintain our end-2010 FBM KLCI target of 1,400," said CIMB Research.

Selangor PROPERTIES [] Bhd posted net profit of RM33.3 million for 3Q ended July 31, up 182% from RM11.8 million a year ago, boosted by foreign exchange gains and higher profits from property development.

Revenue rose 36.5% to RM70.55 million from RM51.68 million. Earnings per share were 9.69 sen versus 3.44 sen.

In VASTALUX ENERGY BHD [], its executive vice chairman Mohamad Nor Abdul Rashid continued to reduce his stake in the company.


Vastalux Weekly Chart


He sold 3.98 million shares in the open market at prices ranging from 41 sen to 46.8 sen from Sept 4 to 23. The recent disposals reduced his stake to 63.73 million shares.

As for NSTP and Utusan Malaysia, investors could be ready to lock in gains after several days of gain following an upgrade by Macquarie Research.


UEMland Weekly Chart

Macquarie Research upgraded NSTP to outperform and a target price of RM2.50, based on a 12 times price-to-earnings (PER) for 2010E. NSTP closed 13 sen higher at RM2.29 last Friday while Media Prima added four sen to RM1.54 and Utusan jumped 12.5 sen to RM1.04.

NSTP's three newspapers in its fold account for 35% of total circulation and 22% of total newspaper advertising spending (adex), it had said in the report.

Source: Edgedaily


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Wall Street drops on Fed stimulus withdrawal fears

Thursday, September 24, 2009

NEW YORK: Stocks fell on Wednesday, Sept 23 as investors worried the Federal Reserve is closer to pulling back on extraordinary measures to inject funding to shore up the economy, according to Reuters.

The Fed's policy-setters met and kept interest rates unchanged, as expected, but they also said the U.S. central bank would slow purchases of mortgage debt to extend that program's life until the end of March. That was seen as a step toward a measured withdrawal of its extraordinary support for the economy during the downturn.

"They're talking about removing some of the various packages they have in place for purchasing mortgages and other instruments in debt markets that was kind of keeping everything flowing," said Kurt Brunner, portfolio manager at the Swarthmore Group in Philadelphia.

"There's a broad concern about what happens when the Fed gets out of the way."

Among the casualties were banks, housing stocks and energy shares. The Dow Jones home CONSTRUCTION [] index slid 3.4 percent, while the S&P energy index declined 2 percent, a decline that coincided with a sharp slide in crude oil prices.

The Dow Jones industrial average shed 81.32 points, or 0.83 percent, to 9,748.55. The Standard & Poor's 500 Index declined 10.79 points, or 1.01 percent, to 1,060.87. The Nasdaq Composite Index lost 14.88 points, or 0.69 percent, to 2,131.42.

Initially stocks had risen sharply following the Fed's comment that economic activity was picking up, but in the last hour of trading the market reversed course as investors fretted about the timing of the removal of some of the Fed's stimulus.

The other worry was the Fed's vow that interest rates will stay low for an extended time.

"Keeping interest rates low -- it's positive for the consumer, but it's tougher for banks to make money with interest rates so low," said Dan Faretta, senior market strategist at Lind-Waldock, a brokerage firm in Chicago.

The market's run-up of nearly 60 percent over six months might have also caused some investors to use the Fed's statement as reason to book profits, he added.

Slowing mortgage purchases is something the Fed could consider in another six months, Faretta said. "There's still a lot of problems with mortgages, the housing market in general, as well as the banking sector."

Among banks, JPMorgan fell 3.03 percent to US$45.06, making the stock the Dow's top drag. The S&P financial index .GSPF and the KBW bank index each lost 2.1 percent.

Home builder Toll Brothers fell 3.4 percent to US$20.68. In energy, Chevron Corp fell 1.7 percent to US$71.73, while U.S. front-month crude futures declined US$2.79 or 3.89 percent to settle at US$68.97 a barrel.

Networking equipment maker Cisco Systems weighed heavily on Nasdaq, falling 2.6 percent to US$22.80.

Volume was moderate, with about 1.32 billion shares changing hands on the New York Stock Exchange, compared with last year's estimated daily average of 1.49 billion. On the Nasdaq, about 2.72 billion shares traded, above last year's daily average of 2.28 billion. - Reuters


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Ranhill trapped in symetrical Triangle

Saturday, September 19, 2009



Ranhill trapped in symetrical triangle in both weekly and daily chart. Longterm showed uptrend with next resistant at RM1.17 and current support at Rm0.93. Next support seen at RM0.83 if the current support fail.

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Uchitec break downtrend resistant - short term

Thursday, September 10, 2009

Uchitec at 9/9/2009

Is Uchitec can sustain the current share price at this moment? Since it break the short term downtrend...

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