Stocks to watch: MRCB, Daibochi, Dialog, STAR
KUALA LUMPUR: Stocks could undergo more volatility again on Wednesday, Nov 18, with some buying of selected counters but the underlying tone could be cautious with investors quick to take profit as the day progresses.
Investors should look to sell into strength stocks which had exceeded their target prices and await fresh opportunities.
On Tuesday, key Asian markets, especially Bursa Malaysia started off on a strong note but worries about the strength of the global economic recovery and how much further can the rally continue, saw the 30-stock FBM KLCI falling into the negative zone. Only very late fund buying managed to push it into the positive zone but the broader market was cautious.
This was also seen on Wall Street. US stocks rose to fresh 13-month highs on Tuesday, Nov 17 as upbeat broker views on improving prospects for two Dow components offset disappointing holiday spending outlooks from Target and Home Depot, according to Reuters.
Even so, the underlying tone was negative as investors fretted about the strength of the recovery and the recent rally, and more stocks fell than rose.
The Dow Jones industrial average rose 30.46 points, or 0.29 percent, to close at 10,437.42. The Standard & Poor's 500 Index edged up 1.02 points, or 0.09 percent, to 1,110.32. The Nasdaq Composite Index added 5.93 points, or 0.27 percent, to 2,203.78.
Stocks to watch include MALAYSIAN RESOURCES CORP []oration Bhd (MRCB), Daibochi Plastic and Packaging Industry Bhd, DIALOG GROUP BHD [], STAR PUBLICATIONS (M) BHD [], AMMB HOLDINGS BHD [] and Kumupulan Jetson Bhd.
MRCB posted net profit of RM10.02 million for its third quarter (3Q) ended Sept 30, reversing from a loss of RM26.81 million a year earlier.
Daibochi announced a dividend policy to distribute at least half of its earnings. The packaging
company's net profit rose nearly four times in the 3Q ended Sept 30, 2009. It has already declared total net dividends worth nine sen, representing 41% of earnings, so far this fiscal year.
Daibochi serves the recession-proof food and beverage, and fast moving consumer good industries.
Oil and gas (O&G) player Dialog announced a a 2-for-5 bonus share issue after reporting year-on-year earnings growth of 43%. Bulk of the bonus issue would be financed from its revaluation reserve account, while the remainder from its retained profits. At yesterday's close of RM1.35 per share, the bonus issue is equivalent to a share dividend worth 40 sen.
Star Publications (M) Bhd expects to get RM111 million in profit under a proposal to develop its Section 13 property in Petaling Jaya via a joint venture.
AMMB agreed to go ahead and buy Malaysian Assurance Alliance Bhd's general insurance business for a lower price, but without the acquisition of the 4.9% stake in MAA Takaful Bhd. The
price for the general insurance business had been lowered to RM180 million from RM254.8 million.
Naza TTDI Sdn Bhd is undertaking a RM15 billion development project, which comprises the Matrade Centre, residences, offices, a shopping mall and a hotel, on a 65-acre plot of land in Jalan Duta, under a privatisation deal with the government.
Jetson shares had climbed in recent weeks on expectations it would secure part of the development project.
