Friday, December 17, 2010

BURSA: Stocks to watch:* Top Glove, Xingquan, MMC, Tenaga

KUALA LUMPUR: Blue chips are expected to see rangebound trade on Thursday, Dec 16 with limited upside following the U.S. stocks suffered a third straight late-day sell-off on Wednesday.

On Wall Street, the Dow Jones industrial average slipped 19.07 points, or 0.17 percent, to 11,457.47. The Standard & Poor's 500 Index shed 6.36 points, or 0.51 percent, to 1,235.23. The Nasdaq Composite Index dropped 10.50 points, or 0.40 percent, to close at 2,617.22.

Earlier, the Dow hit a fresh 52-week high intraday at 11,519.04.

Stocks to watch are Top Glove Corp Bhd, Xingquan International Sports Holdings Ltd, MMC Corp'' Bhd, Tenaga Nasional'' Bhd and LCL Corp Bhd.

The Edge FinancialDaily reports analysts saying the 44.7% decline in the earnings of Malaysia's largest glove producer, Top Glove Corp Bhd, is not a sign of things to come for the other glove manufacturers.

Top Glove's earnings fell 44% to RM36.05 million for the first quarter ended Nov 30 from RM65.21 million a year ago as it was impacted by the high latex prices and a weak US dollar.

The Edge FinancialDaily also reported funds managers, notably foreign ones based in Europe and the US, have been buying into China-based shoe and shoe sole maker Xingquan, according to its corporate finance chief Ooi Guan Hoe.

TENAGA NASIONAL BHD [] plans to maintain its capital expenditure (capex) at between RM4.2 billion and RM4.5 billion for financial years ending Aug 31, 2011 and 2012.

However, capex was expected to rise by between RM1 billion and RM2 billion in 2013 with the additional three power plants.

In MMC Corp, Ahmad Jauhari Yahya has resigned as director of the company effective Wednesday. He was the prime mover in running Malakoff Corporation Bhd, a unit of the company.

His resignation from MMC followed his resignation as MD and CEO of Malakoff.

LCL Corp Bhd, which was badly impacted by the Dubai financial crisis, faces suspension with effect from Dec 23 after it failed to come up with a regularisation plan.

It said the securities would be de-listed on Dec 27, unless an appeal is submitted to Bursa Securities on or before Dec 22, which is the appeal timeframe.

Source: The Edge | Publish date: Thu, 16 Dec

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