Trading ideas: Bumi Armada, Dnex, Astro, oil and gas
ARMADA (5210), DNEX (4456), ASTRO (6399)
KUALA LUMPUR: Bumi Armada, Dnex, Astro and oil and gas related counters would be among the stocks to watch on Friday after the selldown the previous day and amid the fresh corporate news.
Foreign funds were net sellers at RM192.4mil on Thursday as the FBM KLCI tumbled 20.95 points to close below 1,750 at 1,744.57.
JF Apex Research said Asian stocks appear set for a mixed open on Friday, as another slump in oil prices could offset the positive lead from Wall Street overnight.
“We expect the KLCI to hover above its critical support of 1,735,” it said in its market outlook report.
It said Dnex is seeking to diversify into energy and power generation business after it has entered into a share sale agreement with one of the directors of Forward Energy Sdn Bhd.
As for Bumi Armada, the group has finally executed the contract for the supply of one FPSO to Indonesia based Husky CNOOC Madura Ltd after several delays.
As for Astro, its earnings fell 8% to RM113.41mil for the third quarter ended Oct 31, against RM123.71mil a year ago mainly due to an increase in depreciation of property, plant and equipment, amortisation of software, as well as higher tax expenses, among others. For the nine-month period, Astro posted a net profit of RM379.4mil, up 12.7% from RM336.6mil a year ago.
JF Apex Research said the Securities Commission had approved Perak Corp’s withdrawal of the group’s selective capital reduction and repayment exercise.
Oil and gas stocks would be in focus again after the selldown the previous day as US light crude oil slipped below the US$60 per barrel as producers fight for market share.
Overnight on Wall Street, US stocks advanced, cutting weekly losses, but euphoria over increased retail sales in November faded as oil fell to another five-year low and renewed worries of a government shutdown.
http://www.thestar.com.my
