KUALA LUMPUR: Key regional markets could see some selling pressure on Tuesday, Aug 24 following the cautious overnight close on Wall Street as investors again worried about the health of the global economy.
On Wall Street, the dollar strengthened against major currencies, including the euro, which was further hurt by poor European economic data and prospects of loose monetary policy for a longer period in the region.
The Dow Jones industrial average finished down 39.21 points, or 0.38 percent, at 10,174.41, while The Standard & Poor's 500 Index lost 4.33 points, or 0.40 percent, to 1,067.36. The Nasdaq Composite Index fell 20.13 points, or 0.92 percent, to 2,159.63.
At Bursa Malaysia, investors would be watching whether the FBM KLCI could hold on to the 1,400 level, the first time in 30 months, as the broader market showed some signs of caution and profit taking.
Stocks to watch on Tuesday include Genting Malaysia Bhd, QL Resources Bhd, Telekom Malaysia Bhd and Proton Holdings Bhd.
Investors will also have to brace for the corporate earnings which are into the full swing. Companies which are expected to announce their results are Axiata Group Bhd, IOI Corporation Bhd, QSR Brands Bhd, Malaysian Resources Corp Bhd and Malaysian Bulk Carriers Bhd.
Genting Malaysia’s EGM on Tuesday is for shareholders to decide on its controversial decision to acquire the casino businesses in UK from Genting Singapore plc for 340 million pound sterling.
Meanwhile, in Tuesday’s The Edge FinancialDaily, it reports that the quiet poultry industry is seeing some "egg-citement" with new corporate developments.
QL Resources Bhd yesterday acquired 11 million shares or 23.29% of Lay Hong Bhd in an off-market transaction. The identity of the seller was not disclosed but it is believed to be London Biscuits Bhd.
Telekom Malaysia’s net profit was more than halved to RM124.4 million in its second quarter ended June 30, 2010 (2QFY10) from RM266 million a year earlier due to lower other operating income and lower unrealised forex translation gains on borrowings of RM18.1 million versus RM123.2 million previously.
Proton posted net profit of RM84.68 million for the 1Q ended June 30, 2010, up 55.2% from RM54.55 million a year ago, underpinned by higher sales volume and improved profit margins from better product mix.
Revenue rose to RM2.29 billion from RM1.85 billion in 2009, while earnings per share improved to 15.40 sen from 9.90 sen.
Proton said that in line with the improved market sentiments, its domestic sales volume grew by 17% arising from demands for its three core models, namely, Saga, Persona and Exora.
Boustead Holdings Bhd’s net profit for the second quarter (2Q) ended June 30, 2010 surged 212% to RM146.5 million from RM46.9 million a year ago, mainly due to stronger palm oil prices and higher sales volume.
As for Axiata, RHB Research Institute believes Axiata’s results are likely to come in stronger on a year-on-year basis, underpinned by strong performances at Excelcomindo and Dialog; and a low base effect.
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