Friday, July 29, 2011

Stocks to watch 20110728 : Gadang, WCT, Unisem, Tasek, MAHB, Genting

Written by Surin Murugiah of
Thursday, 28 July 2011 21:03

KUALA LUMPUR: Indications of an anticipated slower economic expansion in Europe in the second half of this year, and the looming debt crisis in the US could weigh on regional markets on the final trading day of July.

The European Commission's monthly sentiment index, based on a survey of businessmen and consumers across the 17-nation euro zone, fell to 103.2 in July from 105.4 in June. This month's figure was the lowest reading since 102.2 in August 2010.

European markets opened sharply lower on Thursday on news of the data as well as on weaker corporate earnings.

However, there could be some respite at the US markets as initial jobless claims in the United States dropped a very sharp 24,000 in the July 23 week to 398,000 for the first sub-400,000 reading since early April.

But overall, market observers have cautioned the sentiment could remain tepid at regional markets until the US debt ceiling issue is resolved.

Among the stocks that could be in focus today on Bursa Malaysia are GADANG HOLDINGS BHD [], WCT BHD [], UNISEM (M) BHD [], TASEK CORPORATION BHD [], Malaysia Airports Holdings Bhd, GENTING BHD [] and Tasek Corporation Bhd.

Gadang cautioned that it sees a more challenging year moving forward, with the tendering process getting more competitive with lower operating margins, after it slipped into the red for the financial year ended May 31, 2011.

Gadang posted net loss RM4.25 million compared to net profit RM14.87 million in 2010, despite revenue increasing to RM348.32 million from RM270.45 million.

WCT secured a RM115.09 million contract from Vale Malaysia Manufacturing Sdn Bhd (VMM) for earthwork services in Teluk Rubiah, Perak.

It said on Thursday, July 28 that its unit WCT CONSTRUCTION [] Sdn Bhd had been awarded the project comprising earthwork, drainage, roads and pavement, slope protection works and temporary sedimentation ponds at VMM's Project - Phase 1A (Stage 1), Teluk Rubiah,

Unisem net profit for the second quarter ended June 30l, 2011 fell 75% to RM12.03 million from RM48.05 million a year earlier due mainly to a decline in revenue.

It said on Thursday, July 28 that its revenue fell 14.5% to RM307.52 million from RM359.50 million in 2010.

Tasek declared a gross interim dividend of 20 sen per share in respect of the financial year ending Dec 31, 2011 after its net profit for the second quarter ended June 30, 2011 rose to RM24.21 million from RM23.11 million a year earlier.

MAHB net profit for the second quarter ended June 30, 2011 jumped 37.4% to RM81.92 million from RM59.62 million a year earlier due mainly to a positive growth in revenue.

It said on Thursday, July 28 that its revenue for the quarter rose to RM654.23 million from RM525.01 million in 2010.

Meanwhile, RAM Ratings reaffirmed the respective long- and short-term corporate credit ratings of Genting at AAA and P1.

It has also concurrently reaffirmed the enhanced long-term AAA(s) rating of GB Services Bhd’s (GB Services) RM1.6 billion Medium-Term Notes Programme (2009/2024).

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