Even do the market is bleeding a market watch also must not be forgot. Anyway let face the red with a bright smile.
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KUALA LUMPUR, Monday, 08 August 2011: Investor sentiment at the local stock market is likely to remain nervous on Tuesday, Aug 9 and the FBM KLCI could extend its losses in line with the recent weak performance at global equity markets rattled by the downgrade of the US credit rating.
Bursa Malaysia saw RM60.65 billion erased from market capitalisation over the last two trading days, with 49.9 points erased from the KLCI following the tumble last Thursday at Wall Street, as well as S&P downgrading the US credit rating on Friday.
OSK Research director Chris Eng on Aug 8 downgraded the Malaysian market to Neutral with a lower year-end target of 1,557.
“While there is still hope for a recovery of confidence if a massive coordinated global response emerges, we believe that markets may find it difficult to reclaim their recent highs anytime soon.
“As such, we downgrade our KLCI 2012 fair value from 1,710 points to 1,466 points based on a change in the applied PER from 15.5 times to 13 times,” he said.
Meanwhile, indications are that the contagion effect from the US is likely to have far-reaching consequences, as European markets resumed their sell-off in early trade on Monday, on concerns that the US could slip into recession.
Regionally, Singapore’s Prime Minister Lee Hsien Loong said the republic’s economy was likely to expand by 5%-6% this year, indicating that the country now expects growth to come in at the lower end of its 5%-7% forecast.
With the generally tepid global sentiment, the FBM KLCI is likely to remain subdued.
Among the stocks with fresh corporate developments that could be in focus are SAPURACREST PETROLEUM BHD [], BINA DARULAMAN BHD [], TANJUNG OFFSHORE BHD [], HEITECH PADU BHD [].
SapuraCrest inked a conditional agreement to acquire Clough Limited’s marine CONSTRUCTION [] and offshore engineering operations in Australia, UK and US for a cash consideration of A$127 million (RM400 million).
The company said besides providing a global platform, the acquisition also provides an opportunity for the Group to expand its activities in subsea and deepwater segments.
It said the wider capabilities, network and asset base following the acquisition would strategically position it to tap opportunities to expand its regional footprint in the key offshore markets of Indonesia, Vietnam, Thailand, China, Australia and India, as well as Brazil.
It said the Malaysian market, which currently accounts for a substantial portion of the company’s order book, would continue to be a priority given the increasing job prospects.
Bina Darulaman’s unit, Syarikat Bina Dan Kuari Kedah Sdn Bhd landed separate contracts worth a combined RM30.61 million.
Tanjung secured a contract worth US$1.75 million (RM5.27 million) from MISC BHD [] to supply two units of waste heat recovery units (WHRU) for PM304 Cendor Field Phase 2 Development.
HeiTech was awarded a RM7.47 million contract by the government to develop an open source hospital information application system integration project.
Source: The Edge
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