KUALA LUMPUR (May 15): The FBM KLCI could likely extend its losses for a third day on Tuesday, as external concerns continue to plague equity markets worldwide.
On Bursa Malaysia, plantation-related stocks could come under some pressure as crude palm oil futures for the third month fell RM120 per tonne to RM3,145.
Uncertainty over the impact of a potential Greek exit from the euro on the debt-laden 17-nation currency bloc drove a rush to safety by investors on Monday, sending the single currency to near four month lows and European shares down 1.5%, according to Reuters.
Problematic negotiations on forming a new Greek government have increased the chances that it will be unable to meet the conditions of its bailout deal, and a worsening fiscal position in Spain has added to the sense of crisis facing the region, Reuters reported.
Among the stocks that could be in focus on Bursa Malaysia are Bumi Armada Bhd, Permaju Industries Bhd, Latexx Partners Bhd, Wing Tai Malaysia Bhd and United Plantations Bhd.
Bumi Armada said it has taken delivery of two Anchor Handling Towing Supply vessels (AHTS) from Beauty Offshore Ltd and Bay Offshore Ltd, both subsidiaries of Sanko Steamship Co Ltd, one of Japan's largest ship owners. It said on Monday that the two 12,000 brakehorse power AHTS vessels were designed and constructed in Japan in 2009.
Permaju Industries has denied a news article that it was disposing of 30 acres of land in Sabah for RM100 million. In a filing on Monday, the company, in response to an article in the Nanyang Siang Pau on May 13, said its directors — after having made due inquiries — wished to advise that to the best of their knowledge and beliefs, they are not aware of such dealings.
Wing Tai's net profit for the third quarter ended March 31, 2012 rose 31.45% to RM24.28 million from RM18.47 million a year earlier, due mainly to higher revenue from the property development and retail divisions. The company said on Monday that its revenue for the quarter rose 21.35% to RM116.74 million, from RM96.19 million in 2011.
Latexx's net profit for the first quarter ended March 31, 2012 fell 34.34% to RM8.36 million from RM12.73 million a year earlier, due mainly to competitive pricing. The company said on Monday that its revenue for the quarter rose 4.5% to RM98.99 million from RM94.75 million in 2011, due to an increase of demand for gloves.
Reviewing its performance, Latexx said the improvement in the revenue and operating profit of the current quarter compared with the preceding quarter was mainly due to the decline in latex prices, along with an increase of sales volume in the current quarter.
United Plantations's net profit for the first quarter ended March 31, 2012 fell 15.6% to RM72.65 million from RM86.09 million a year earlier, due mainly to higher production costs. It said on Monday that its revenue for the quarter rose 21.65% to RM338.67 million from RM278.39 million in 2011, due to higher production of crude palm oil and palm kernel.