Stocks to watch 20110702: Tanjung Offshore, Wah Seong, Asia Media, Petronas Gas

Written by Joseph Chin of theedgemalaysia.com

KUALA LUMPUR: After four out of five days of gains on Bursa Malaysia last week, with the FBM KLCI pushing to fresh historic highs, investors could expect some mild profit taking.

The FBM KLCI closed at a fresh high of 1,582.94 last Friday, July 1 and for the week, it was up 18.28 points or 1.16% from 1,564.66 on June 24. However, the broader FBM 100 outperformed the KLCI, rising 1.2% from 10,513.45 to 10,639.70.

The KLCI would need to build a firmer base and see more buying of blue chips before moving higher.

One of concerns among investors is the current political scenario as the Opposition parties seem bent on having the Berish 2.0 rally on Saturday, July 9 despite warnings from the authorities not to proceed while businessmen warn of the negative economic fallout.

Stocks to watch on Monday include TANJUNG OFFSHORE BHD [], WAH SEONG CORPORATION BHD [], Asia Media Bhd, PETRONAS GAS BHD [] and NOTION VTEC BHD [].

Tanjung Offshore was awarded RM50 million contract by Petronas Carigali Sdn Bhd to provide three offshore support vessels for periods ranging between one and three years.

The contract would see it providing the ships for the primary period from June and July 2011 respectively with options to extend between one and two years.

Wah Seong secured a US$45 million (RM136.78 million) contract from Australia Pacific LNG Pty Limited to provide pipeline coatings for the Australia Pacific LNG project in Australia.

The contract secured by its pipe coating business unit on June 29 involved coating of over 700 km of pipes.

The Edge weekly reports that Asia Media is seeking a boost from its broadcasting licence.

The company's huge margins and licence to provide free-to-air broadcasting services are an attractive proposition for bigger media players eyeing a piece of the electronic media market.

Petronas Gas inked a shareholders’ agreement with NRG Consortium (Sabah) Sdn Bhd (NRG) to provide operation and maintenance services to a 300-Megawatt gas power plant and its related facilities and infrastructure in Kimanis, Kota Kinabalu. The service would be provided through a joint venture company.

Notion Vtec announced that the controlling shareholders of Notion Vtec had abandoned negotiations to dispose of their business/equity interest after talks with the interested party fell through, just two weeks after it said negotiations were still on-going.

Analysts said pricing could be an issue due the difficulties which the hard-disk drive manufacturers are facing. Perhaps, Notion VTec could brace for a mild recovery and await better offers.