25 Mei 2009

Stocks to watch: Tebrau Teguh, UEM Land, MRCB, Tradewinds

Tags: MRCB | Tebrau Teguh | Tradewinds | UEM Land

Written by Joseph Chin

Saturday, 23 May 2009 20:56

KUALA LUMPUR: Companies related to the Iskandar Malaysia project would continue to attract interest include Tebrau Teguh, UEM Land, MRCB and Tradewinds Malaysia. The proposal to look into a third bridge on the eastern side of Johor, to link Malaysia and Singapore, would also stir interest in these companies. According to Prime Minister Datuk Seri Najib Razak, it was Malaysia which initiated the project. The two countries will also look into two iconic projects in Iskandar Malaysia which would include a wellness centre and a mixed development township. As for corporate results, this would be the last week for the January-March quaday of losses in the US could restrain investors' appetite on concerns the looming budget deficit could see its ratings lowered, in tandem with UK, during the week of May 25-29. Standard Chartered Group Global Research said in a note to clients that while US consumer spending has bottomed out, the return to growth will be slow. "Headwinds include falling employment, falling house prices and tight credit. Lower gas prices helped consumers over the winter but prices are now rising. Weak real income growth and rising savings will keep consumer spending slow," it said. On the home front, the watch list this week would include Bank Negara's monetary policy meeting on May 26 and the release of the first quarter GDP data, which would show a contraction, on May 27. Investors would want to get the first hand view from the central bank about the outlook for the second quarter and the second half. At Bursa Malaysia, there could be some consolidation after the 9.7 points gain, underpinned by fund buying interest in heavyweights including Tenaga, Genting, IOI Corp, Boustead and MISC.rter with Proton, MAS, AirAsia scheduled to release their results. Companies reported weaker year-on-year weaker earnings were Ta Ann Holdings Bhd, TH Plantations, Bandar Raya Development and PIE Industrial. Those which swung into the red were Meico Chipboard, Magna Prima, Mulpha International and Tradewinds Plantations. Ta Ann net profit for the first quarter ended March 31, 2009 fell 62% to RM8.7 million from RM13.9 million a year earlier due to lower plywood average selling price and sales volume, as well decrease in fresh fruit bunch production. In Infortech Alliance, Wassily Capital Limited emerged as a substantial shareholder after acquiring 11.88 million shares or 18% stake in the open market. The shares were disposed of by Grandport Co., Ltd of South Korea. Meanwhile, companies involved in the related semiconductor industry could see some marginal interest after the North America-based manufacturers of semiconductor equipment showed some signs of bottoming. These companies posted US$253 million in orders in April 2009 (three-month average basis) and a book-to-bill ratio of 0.65. The three-month average of global bookings in April 2009 was US$253 million. The bookings figure was 3% above the final March level of US$245.6 million, and about 77% below the US$1.09 billion in orders posted in April last year.