#Stocks to watch* P & O, Wah Seong Corp, Metronic, MBSB and Tune Insurance

KUALA LUMPUR (Feb 16): The FBM KLCI could start next week on a cautious note but trend higher by the end of the trading week, as investors’ both foreign and domestic looking at Malaysian equities remain jittery over the uncertainties related to the impending thirteenth general election.

The lack of corporate announcements last week following the extended break for the Chinese New Year holidays kept investors on the sidelines as the FBM KLCI stayed muted.

But with the corporate earnings season set to move into full swing next week, the local index could trend higher. Among the companies slated to release results are Kuala Lumpur Kepong Bhd and CIMB Group Holdings Bhd.

Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said that going forward, he expects the FBM KLCI to find support at 1,610-1,600 level and trend moderately higher riding on global merger news, Japan massive liquidity programme and G20 meeting expectation.

“On the technical front, FBM KLCI could be forming a bullish inverted "head and shoulders" pattern with two legs already tested 1600 level (on 22nd January and 7th February). A "head and shoulders" pattern should have three major troughs which we believe is in progress with another trough to occur near 1,600 level,” he said.

The bullish pattern is now accompanied by positive divergences which we are seeing now in key oscillators (eg. MACD, RSI and MFI). That raises the likelihood that the early 7th February low (1585 level) could be a speculative intermediate bottom for now. Going forward, we expect to see two technical development to suggest a convincing major bottom (1) another test near 1600 level (could be seen early next week) and (2) an eventual upside breakout above 1640 level

Meanwhile, CIMB Research in a strategy note following its Malaysia roadshow speaking to investors in Asia, Europe and America about the outlook for Malaysia's economy and stock market in 2013 said that foremost on investors’ minds were the upcoming 13th general election and the risks associated with it.

“As we have been highlighting since early-2012 when we downgraded Malaysia from Overweight to Neutral, there are considerable election risks that we believe the market has yet to fully factor in.

“Our view remains unchanged, as is our end-2013 KLCI target of 1,670 points,” it said.

 

The research house said that in the pre-election period, its preference continued to lie in defensive and high-yielding sectors, such as brewery, REITs and utilities.

“But post elections, we are likely to shift our preference to higher-beta cyclical sectors and laggards. This is likely to include construction and property stocks that have languished for the past 12-18 months,” it said.

Among the stocks that could be in focus next week are Pacific & Orient Bhd (P & O), Wah Seong Corporation Bhd, Metronic Global Bhd, Malaysia Building Society Bhd (MBSB) and Tune Insurance Holdings Bhd.

P & O, which is selling a 49% stake in its insurance unit for RM270 million cash, plans to use RM37 million to pay special dividends.

In its circular to shareholders last Friday, it said bulk of the proceeds or RM150 million would be for investments to be identified later.

Wah Seong Corp Bhd’s pipe coating business unit has bagged a pipe coating contract valued at US$198 million in Norway from Statoil for the Polarled Development Project and the Kristin Project.

“The Polarled Development Project is a Statoil project for the transportation of gas from the Aasta Hansteen Field in the Norwegian Sea to the onshore processing facility in Nyhamna, Norway. The Kristin Project links the Kristin field to the Polarled pipeline,” said the announcement.

Metronic Global Bhd has entered into a sale and purchase agreement (SPA) with Zuellig Pharma Specialty Solutions Holdings Pte Ltd (ZPSSH) to dispose its 51% stake in MiCare for RM10.2 million.

In a filing to Bursa Malaysia, Metronic said the SPA involves the sale of its 1.4 million ordinary shares in Metronic I-Care Sdn Bhd (MiCare).

The Edge weekly in its latest edition reported that MBSB could soon become a full-fledged licensed bank.

The Edge said MBSB was back in the spotlight due to its record earnings, and recent approval to directly deduct loan repayments from civil servants’ salaries at a lower transaction cost.

Meanwhile, the Edge also reported that Tune Insurance, which is slated to make its debut on the Main Market of Bursa Malaysia on Feb 20, is seen by analysts as a good proxy for AirAsia Bhd.

“Given the Tune Insurance’s income, which is derived from the travel insurance segment, correlates with the passenger growth of its sister companies in the AirAsia group, we believe it  could serve as an alternative investment vehicle for investors who wish to participate in AirAsia’s growth story without exposure to oil price risk,” the Edge cited an Alliance Research report.

 

--

Get stories like this on the Yahoo app and discover more every day.
Download it now.
Loading...
  • Gold steady ahead of Trump's policy speech Reuters - 2 hours 9 minutes ago

    The metal hit its highest since Nov. 11 at $1,263.80 in the previous session. * U.S. gold futures (GCcv1) fell 0.5 percent to $1,252.70. * Investors are looking towards U.S. President Donald Trump's policy speech to a joint session of Congress on … More »

  • Snap expects some IPO investors to make year-long commitments
    Snap expects some IPO investors to make year-long commitments Reuters - 2 hours 13 minutes ago

    While Snap cautioned it had no binding commitments yet from investors accepting such a lock-up period, the disclosure is a sign of confidence from the company in what is expected to be the biggest U.S. IPO since Facebook Inc (FB.O). A year-long … More »

  • Snap expects some IPO investors to make year-long commitments
    Snap expects some IPO investors to make year-long commitments Reuters - 2 hours 14 minutes ago

    While Snap cautioned it had no binding commitments yet from investors accepting such a lock-up period, the disclosure is a sign of confidence from the company in what is expected to be the biggest U.S. IPO since Facebook Inc (FB.O). A year-long … More »

  • Snap expects some IPO investors to make year-long commitments
    Snap expects some IPO investors to make year-long commitments Reuters - 2 hours 17 minutes ago

    While Snap cautioned it had no binding commitments yet from investors accepting such a lock-up period, the disclosure is a sign of confidence from the company in what is expected to be the biggest U.S. IPO since Facebook Inc. A year-long lock-up … More »

  • Self-driving Nissan car takes to Europe's streets for first time Reuters - 2 hours 33 minutes ago

    Guided by cameras and radars, and negotiating traffic and roundabouts, a self-driving Nissan car took to the streets of London on Monday for the Japanese company's first European tests of an autonomous vehicle. Travelling at up to 50 miles (80 km) … More »

  • Belmond posts 4Q profit Associated Press - 2 hours 36 minutes ago

    On a per-share basis, the Hamilton, Bermuda-based company said it had profit of 7 cents. Earnings, adjusted for non-recurring gains and to account for discontinued operations, came to 1 cent per share. ... … More »

  • JBT posts 4Q profit Associated Press - 2 hours 38 minutes ago

    On a per-share basis, the Chicago-based company said it had profit of 77 cents. Earnings, adjusted for restructuring costs and to account for discontinued operations, were 85 cents per share. The food ... … More »

  • BRIEF-Mitrajaya entered into a global JV agreement with Gema Padu Reuters - 2 hours 39 minutes ago

    Feb 28 (Reuters) - Mitrajaya Holdings Bhd * On 27 Feb entered into a global joint venture agreement with Gema Padu Sdn Bhd for 181.2 million RGT * Deal to jointly develop various parcels of land in Selangor ... … More »

  • Black Stone Minerals misses Street 4Q forecasts Associated Press - 2 hours 43 minutes ago

    The Houston-based company said it had net income of 1 cent per share. The results missed Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings ... … More »

  • BHP Says `Bloody Awful' Trade Pledges Threaten Trump's Pump (1) Bloomberg - 2 hours 52 minutes ago

    (Bloomberg) -- The head of the world’s biggest mining company intensified his warnings that U.S. trade protectionism under President Donald Trump would threaten global growth and the fight against poverty. … More »

  • Maiden Holdings reports 4Q loss Associated Press - 2 hours 55 minutes ago

    On a per-share basis, the Hamilton, Bermuda-based company said it had a loss of 87 cents. Losses, adjusted for one-time items, came to 81 cents per share. The reinsurance holding company posted revenue ... … More »

  • Japan January retail sales rise 1.0 percent year/year - government
    Japan January retail sales rise 1.0 percent year/year - government Reuters - 3 hours ago

    TOKYO (Reuters) - Japanese retail sales rose 1.0 percent in January from a year earlier, versus a median market forecast for a 0.9 percent increase, government data showed on Tuesday. To view full tables, ... … More »

  • UK consumer morale dips as inflation pinches households - GfK Reuters - 3 hours ago

    British consumer morale edged lower in February as rising inflation following last year's Brexit vote made householders warier about the outlook for their finances, surveys showed. Two separate reports conducted by market research firms GfK and … More »

  • South Korea's March business sentiment improves slightly
    South Korea's March business sentiment improves slightly Reuters - 3 hours ago

    An index measuring South Korean business confidence showed that manufacturers turned slightly more optimistic about business conditions for the month ahead as exports continued to grow, a central bank survey showed on Tuesday. The Bank of Korea's … More »

  • Shell Shuns New Oil Sands as Low Crude Prices Force Cost Control Bloomberg - 3 hours ago

    While Shell’s existing oil-sands operations generate strong cash flows, the expense of developing new projects discourages additional investments, Chief Executive Officer Ben Van Beurden said in an interview. Oil sands, the reserves of heavy crude … More »

  • How to put a number to “uncertainty” – and what it means for markets
    How to put a number to “uncertainty” – and what it means for markets Truewealth Publishing - 3 hours ago

    Markets hate uncertainty. But lots of uncertainty – as there is now – doesn’t mean that markets won’t go up. Uncertainty is more subjective than (say) volatility, or stock market valuations, or the price performance of assets. To most people, … More »

  • Exxon's Post-Tillerson Fortunes Closer to Home as New CEO Pivots Bloomberg - 3 hours ago

    After a two-year pricing rout erased 19 percent of Exxon’s untapped crude by making it unprofitable to extract, Woods faces a tough task in sustaining the company’s output. Woods’s first public appearance since becoming chief executive officer is … More »

  • Japan January industrial output falls 0.8 percent month/month - government
    Japan January industrial output falls 0.8 percent month/month - government Reuters - 3 hours ago

    TOKYO (Reuters) - Japan's industrial output unexpectedly fell 0.8 percent in January, posting the first decline in six months, government data showed on Tuesday. The month-on-month fall compared with a ... … More »

  • PHI Inc. reports 4Q loss Associated Press - 3 hours ago

    The Lafayette, Louisiana-based company said it had a loss of $1.08 per share. The helicopter transportation company serving the oil and gas industry posted revenue of $144.9 million in the period. For ... … More »

  • Ensco beats 4Q profit forecasts Associated Press - 3 hours ago

    On a per-share basis, the London-based company said it had profit of 13 cents. Earnings, adjusted to account for discontinued operations and non-recurring gains, came to 9 cents per share. The results ... … More »

  • BWX beats 4Q profit forecasts Associated Press - 3 hours ago

    On a per-share basis, the Lynchburg, Virginia-based company said it had net income of 34 cents. Earnings, adjusted for non-recurring costs and restructuring costs, came to 46 cents per share. The results ... … More »

  • AppFolio reports 4Q loss Associated Press - 3 hours ago

    On a per-share basis, the Santa Barbara, California-based company said it had a loss of 4 cents. Earnings, adjusted for stock option expense, were less than 1 cent on a per-share basis. The property management ... … More »

  • Elio’s tiny car gets 84 mpg and costs only $7,300 — here’s what it was like
    Elio’s tiny car gets 84 mpg and costs only $7,300 — here’s what it was like Business Insider - 3 hours ago

    Hollis Johnson Elio Motors has one of the … Continued The post Elio’s tiny car gets 84 mpg and costs only $7,300 — here’s what it was like appeared first on Business Insider. … More »

  • Sun Hydraulics posts 4Q profit Associated Press - 3 hours ago

    The Sarasota, Florida-based company said it had net income of 12 cents per share. The maker of screw-in hydraulic cartridge valves and manifolds posted revenue of $49.9 million in the period. For the year, ... … More »

  • Medpace tops Street 4Q forecasts Associated Press - 3 hours ago

    On a per-share basis, the Cincinnati-based company said it had a loss of less than 1 cent. Earnings, adjusted for one-time gains and costs, were 35 cents per share. The results topped Wall Street expectations. ... … More »

 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.225-0.005-2.17%
    N21.SI
    2.62-0.12-4.38%
    MC0.SI
    0.285+0.015+5.56%
    PH0.SI
    0.380.00-1.30%
    E5H.SI
    0.174-0.005-2.79%
    40E.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.34+0.05+17.24%
    PA3.SI
    0.133+0.012+9.92%
    5IG.SI
    0.20+0.02+8.70%
    BJD.SI
    0.193+0.013+7.22%
    1A4.SI
    43.01+2.80+6.96%
    C07.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.54-0.06-10.00%
    BQP.SI
    0.25-0.03-9.09%
    BLZ.SI
    0.205-0.020-8.89%
    S46.SI
    0.30-0.02-7.69%
    F83.SI
    0.67-0.05-6.94%
    5JK.SI

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.4051+0.001+0.07%
    USDSGD=X
    1.4872+0.0009+0.06%
    EURSGD=X
    1.7461+0.0001+0.01%
    GBPSGD=X
    80.1700-0.053-0.07%
    SGDJPY=X
    5.5218-0.0037-0.07%
    SGDHKD=X
    3.1632+0.0022+0.07%
    SGDMYR=X
    9,498.3770-5.6465-0.06%
    SGDIDR=X
    4.8919+0.0016+0.03%
    SGDCNY=X
    1.0791+0.0016+0.15%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,254.00-4.80-0.38%
    GCJ17.CMX
    18.36-0.05-0.28%
    SIK17.CMX
    84.47-4.15-4.69%
    ^XAU
    2.69-0.01-0.39%
    HGK17.CMX
    54.14+0.09+0.17%
    CLJ17.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.87+0.07
    ^FVX
    2.37+0.05
    ^TNX
    2.99+0.03
    ^TYX