KUALA LUMPUR (Aug 15): The FBM KLCI could extend its gains for a sixth day on Wednesday and rise to a fresh record, after having closed 0.4% or 6.58 points higher at at an all-time high of 1,652.90 on Tuesday.
Although some analysts have said that the local index could take a breather ahead of the extended Hari Raya weekend on some profit taking activities, the index movement says another and sustaining its momentum in tandem with most global markets.
European shares and the euro rose on Tuesday as slightly better than expected performances by the German and French economies in the second quarter countered data that showed the wider eurozone sliding back towards recession, according to Reuters.
After worrying China trade figures last Friday and Monday's report showing a slowdown in Japan, Tuesday brought news that the eurozone economy contracted 0.2% in the April-June quarter, in line with forecasts from economists polled by Reuters.
Among the stocks that could be in focus on Wednesday are Genting Bhd, AMMB Holdings Bhd, Media Prima Bhd, KKB Engineering Bhd and Petra Energy Bhd.
Genting will reap RM1.9 billion from the proposed sale of its power business to 1Malaysia Development Bhd (1MDB), according to the company's detailed statement. Late on Monday, the gaming group announced that it had entered into agreement to sell its entire stake in power business in Genting Sanyen (Malaysia) for RM2.108 billion. The group is also selling parcels of land on which the power plant is located.
"The group is expected to record a one-off net gain of approximately RM1.9 billion from the proposed disposals, contributing to an increase of approximately 52 sen to Genting's consolidated EPS and NA per share for the current financial year. However, following the proposed disposals, the earnings contribution from the group's power division will be reduced," the statement said. It added the proposed disposals will not have any material impact on Genting's consolidated gearing.
AMMB Holdings's net profit for the first quarter (1Q) ended June 30, 2012 rose 4.6% to RM448.58 million from RM429.01 millions year earlier, due mainly to higher net interest income and lower allowances. Revenue for the quarter rose to RM2 billion from RM1.93 billion. Earnings per share was 14.98 sen compared to 14.33 sen previously, while net assets per share was RM3.82.
Media Prima's net profit for the second quarter (2Q) ended June 30, 2012 rose 27.76% to RM56.79 million from RM44.44 million a year earlier, due mainly to rebound in advertisement expenditure. The company said on Tuesday that its revenue for the quarter rose to RM447.62 million from RM421.67 million in 2011. Earnings per share was 5.28 sen compared to 4.25 sen previously.
Media Prima declared a first interim dividend of three sen per share to be paid on Sept 28. For the six months ended June 30, Media Prima's net profit dipped to RM77.58 million from RM79.23 million, on the back of revenue RM782.91 million compared to RM775.86 million.
Reviewing its performance, Media Prima said its revenue growth for the quarter was due to the general improvement in the economy. On its prospects, Media Prima said as its financial performance improved substantially in the second quarter 2012, the group remained optimistic towards an improved outlook for both consumers and advertisers.
"The group is committed to maintaining its industry leadership position and earnings growth through continued investment in quality and relevant content. Concurrently, the group will continue to exercise prudent financial and risk management whilst leveraging on operating efficiency. The group expects advertisement revenue to improve in the coming months contributed by Hari Raya festival and the 2012 London Olympics," it said.
KKB Engineering secured a contract worth RM48 million from the Sarawak state government to build the transmission pipeline to the to Sama Jaya Free Industrial Zone. The company said on Tuesday that the contract was for 24 months and works scheduled to be completed in the third quarter of 2014. It said the contract was expected to contribute positively to it earnings for the financial years ending Dec 31, 2012 to Dec 31, 2014.
Petra Energy's net profit for the second quarter (2Q) ended June 30, 2012 rose 36% to RM9.1 million from RM6.69 million a year earlier. The company said on Tuesday that revenue for the quarter rose 21.7% to 172.56 million from RM141.78 million in 2011.
Earnings per share was 4.24 sen compared to 3.43 sen, while net assets per share was RM1.66. For the six months ended June 30, Petra Energy's net profit rose to RM16.26 million from RM13.59 million, on the back of revenue RM303.81 million compared to RM274.10 million in 2011.