OCBC Keeps Underperform On Courts
Source Monday March 24, 12:02 PM Contact Us: Kuala Lumpur 603-2692-5254
1202 [Dow Jones] STOCK CALL: OCBC Investment Research keeps underperform on Courts Mammoth (5023); company hurting from competition and soft demand. Projects moderate topline growth and EBITDA margins of 15-16% in FY03-04, below historical range of 20-24%. Adds, stock unattractive with prospective PER of 13-14X and annual dividend yields of 1-2% vs sector average of 4-5%. (VGB)
1134 [Dow Jones] May Nymex crude may have been oversold on speculation of quick U.S.-led victory in Iraq, says HSBC oil and gas analyst Gordon Kwan; "prices could retest $30 a barrel again this week unless the military operations were extremely smooth going into Baghdad." Deteriorating situation in Nigeria, off-peak production in Venezuela and some lost output in Iraq, Kuwait to help prop up prices. (ILK)
1131 [Dow Jones] Dataprep Holdings (8338) suspended untraded at MYR1.23; March 21 announced subsidiary served winding-up petition on March 19 by Fujitsu Systems Business for MYR3.2 million with overdue interest of MYR210,606.51. Trader expects company to make announcement after hours to address next course of action. Does not expect any significant on share price as amount is relatively small. (VGB)
1122 [Dow Jones] Eden Enterprises Warrants (7471W) up 19.6% at 55 sen as syndicates help support strong gains on a fundamentally weak issue, says trader. Adds, recently issued irredeemable convertible unsecured loan stocks (7471-LA), which were undersubscribed with only 32.9% acceptance, now trading at premium 5.8% premium, or MYR1.65, to mother share price of MYRE1.56. Says significant block placed out to operators to help support share price. Advises staying away from stock. (VGB)
1105 [Dow Jones] Tanah Emas (7382) up 1.5% in speculative trade. Stock exhibiting significant price volatility in recent weeks, believed to be initiated by syndicated play, encouraging punters to take positions and potentially capitalize on price movements, says trader. "Today's range has been tight but the stock has climbed from a low of MYR1.26 to a peak at MYR1.38 today," says trader. However, year high MYR1.41, suggesting upside limited. (VGB)
1040 [Dow Jones] MMC Engineering (2178) untraded at MYR4.10 despite indications from parent MMC (2194) it does not plan to maintain its' units listed status. Trader says upside limited after taking into consideration transaction costs. MMC made a voluntary offer for MMC Eng. shares for MYR4.30/share or 2 MMC shares for every existing MMC Eng. shares. As of March 11, MMC owns 75% of MMC Eng. MMC flat at MYR2.06. (VGB)
1012 [Dow Jones] Kumpulan Emas (3557) up 1.4% at 36.5 sen on news unit Salcon Engineering secured MYR35 million water project from Sabah Water Department. Project, aimed at reducing non-revenue water losses, includes setting-up metered zones network, pressure management system, repair of leakages and replacement of pipelines. Contract is for 30 months period starting April 16. (VGB)
0955 [Dow Jones] MSNBC TV quotes unnamed U.S. military officials as saying special operations teams and units of CIA are in Baghdad; officials hint recent explosions there (with no air raid sirens or indications of U.S. aircraft overhead) may have been work of Iraqi resistance groups, possibly working with U.S. forces. Unclear if this is just U.S. disinformation, but it may help sustain markets' hopes for quick U.S. victory.(AXT)
0941 [Dow Jones] U.S. officials say U.S. troops have found suspected "chemical factory" in south Iraq, but don't confirm whether it's actually believed to be chemical weapons facility as Fox TV reported earlier. If U.S. can prove Iraq had major WMD projects, it will greatly help to justify U.S. decision to go to war in court of world opinion, and reduce negative geopolitical fallout from war - so positive for USD and equities. (AXT)
0934 [Dow Jones] IOI Corp. (1961) down 2.6% at MYR4.58, revisiting 13-month low of MYR4.54 as investors continue to sell stock following acquisition of plantation property from major shareholders. "A kaleidoscope of reasons have been provided as to why this is a bad deal, but investors are ignoring the fact that the deal is, in fact, 10-12% earnings enhancing going forward," says foreign analyst. Adds current share price weakness is purely sentiment driven and is excellent opportunity to accumulate stock. Warrants offer cheaper exposure; down 2.6% at MYR1.50. (VGB)
0921 [Dow Jones] Technology subindex up 2.5% at 38.48, led by strong gains in semiconductor assemblers MPI (3867), up 3.6% at MYR11.40 and Unisem (5005), up 3.8% at MYR4.98. Trader cites firmer close on NASDAQ Friday but cautions both stocks off early highs and may retreat further on profit-taking. (VGB)
0916 [Dow Jones] KLCI up 0.3% at 633.88 in follow-through buying interest, reflecting firmer U.S. markets Friday. Profit-taking on handful of blue chips beginning to emerge, suggesting upside limited. "Retail players have been chasing penny stocks and speculative issues higher since last week but buying interest is likely to fade as profit-taking accelerates," she adds. Expects KLCI to trade within 630-635 level. Volume traded moderate with 16.5 million shares valued at MYR24.5 million changing hands. Rises lead falls 137 to 13; 46 flat while 932 untraded. (VGB)
0902 [Dow Jones] Select plantation stocks may attract speculative buying interest as players punt on various merger scenarios following DPM Abdullah Ahmad Badawi's announcement last week about potential consolidation of government-linked companies. Trader says of the 7 companies, punters are likely to accumulate Austral Enterprises (1872), Guthrie Ropel (2399), Highland & Lowlands (2402), Island & Peninsular (1627). (VGB)
0857 [Dow Jones] Malaysia Airports' (5014) shares may edge up after KLIA named best Asian cargo airport in category for cargo-handling of less than 500,000 tonnes a year. Analyst says award suggests KLIA's efforts to focus on cargo-handling bearing fruit; transshipment cargo up 35% on year in 2002. Shares ended down 1.3% Friday at MYR1.52.(CAL)
0837 [Dow Jones] Malaysia PM Mahathir to address special session on Iraq at Parliament at 0200 GMT, say his spokespeople; no details on speech topic but some analysts say he may present much-anticipated economic stimulus package; officials have recently said package will be presented earlier than scheduled April 7 due to onset of U.S.-led attack on Iraq last week. (CAL)