KUALA LUMPUR (June 7): The FBM KLCI is likely to extend its gains on Friday and end the week on an uptrend in line with global markets that rose on Thursday.
World shares hit their highest level in a week on Thursday and the euro jumped after China cut interest rates for the first time in four years, boosting speculation the United States might also embark on a monetary stimulus, according to Reuters.
The 25 basis point cut in China's benchmark interest rates sent US stock index futures sharply higher, pushed the euro above US$1.26 (RM3.99) to the dollar and sent Brent crude oil back above US$100 a barrel, it said.
Among the stocks that could be in focus on Friday are S P Setia Bhd, Sime Darby Bhd, Kimlun Corporation Bhd, WCT Bhd, Boustead Holdings Bhd, Wah Seong Corporation Bhd and construction-related counters.
S P Setia and Sime Darby have been identified as the preferred bidder for the Battersea Power Station in London. In a joint statement on Thursday, the companies said they had entered into an exclusivity agreement with the joint administrators and receivers, Alan Bloom and Alan Hudson of Ernst & Young LLP, on behalf of the owners of the Property, to acquire the site for £400 million (RM1.96 billion).
The two companies said they had a period of up to 28 days to conduct further due diligence and investigations as may be deemed necessary, and to negotiate the contract for the acquisition of the property. "S P Setia's and Sime Darby Property's plans involve the development of a sustainable multi use real estate regeneration project that will provide economic impetus for the creation of a new vibrant centre for south-west central London," they said.
Kimlun's unit SPC Industries Sdn Bhd has secured a contract worth RM48.49 million from MMC-Gamuda KVMRT (T) Sdn Bhd to supply precast concrete tunnel segment (TLS) linings for the Klang Valley Mass Rapid Transit (MRT) project. In a filing on Thursday, Kimlun said its unit's offer was accepted by MMC-Gamuda KVMRT for the supply of the TLS for the Sungai Buloh-Kajang segment of the MRT project.
"The supply of the TLS is expected to spread over a period of approximately 24 months," said Kimlun. Kimlun said the contract was expected to contribute positively to its earnings for the financial years during the supply period.
WCT Bhd's unit WCT Construction Sdn Bhd has landed a contract worth RM72.81 million for industrial civil works from Vale Malaysia Minerals Sdn Bhd (VMM). The company said on Thursday that its unit was awarded the contract for civil works at VMM's Minerals Project: Phase 1A, Teluk Rubiah, Perak,
It said the works are expected to be completed in 18 months. "The contract will contribute positively to the group's earnings and net assets for the financial years 2012 and 2013," it said.
Boustead's and Wah Seong's subsidiaries have entered into a joint venture (JV) agreement to undertake business activities in Myanmar. In separate filings to Bursa Malaysia on Thursday, Boustead and Wah Seong said their subsidiaries — Boustead Global Trade Network Sdn Bhd (BGTN) and Wah Seong Industrial Holdings Sdn Bhd (WSIHSB) respectively — had agreed on an equal shareholding of 50:50 basis through a joint company, namely Passion Returns Sdn Bhd (PRSB), as the vehicle for the joint venture.
The companies said the intended business of PRSB was investment holding and to undertake investment holding activities and businesses in property development and management; provision of general fabrication, engineering and oil and gas services; trading and marketing activities and any other businesses or projects as shall be mutually agreed from time to time in Myanmar.
Construction firms may be in the limelight after CIMB Research said it expects construction order flows to improve in 2H12 s larger rail and highway jobs take centre stage.
In a note Thursday, the research house said stronger progress billings led to 1Q12 outperformance for some contractors under its coverage while timing issues for earnings plagued others. It said new jobs should flow through the numbers in the coming quarters and sustain margins from here on.