Stocks to watch: Bursa queries PMB Technology price limit up

by **Cals** Mon 18 Aug 2014, 09:28

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Monday, 18 August 2014 09:14

KUALA LUMPUR: Based on Bursa Malaysia announcements and news flow last Friday, stocks to watch today may include the following companies:

Affin Holdings Bhd’s net profit fell 30% to RM111.99 million in the second quarter ended June 30, 2014 from RM159.31 million a year earlier. Revenue rose to RM904.46 million from RM757.12 million.

First-half net profit declined to RM254.72 million from RM310.14 million a year earlier. Revenue was higher at RM1.67 billion compared to RM1.49 billion.

Bursa Malaysia has queried PMB Technology Bhd after shares of the aluminium products entity hit limit up last Friday. PMB shares rose as much as 42 sen or 30% to RM1.84 before settling at RM1.81 at 5pm.

PMB Technology, which was the second-largest gainer across the exchange, saw some six million shares done.

The spotlight may also fall on names like Sime Darby Bhd and IOI Corp Bhd, which own oil palm plantations in Indonesia.

This follows news reports that Indonesia may limit foreign ownership of plantations there to 30%. This compares with the maximum of 95% currently.

Reuters reported that Indonesian lawmakers are looking to restrict foreign ownership of plantations to no more than 30%, as the top palm oil producer tries to maximise land usage, protect indigenous people and tighten environmental controls in the sector.

A new draft bill drawn up by members of Indonesia’s parliament aims to open up the sector to smaller, local players. But it would also discourage foreign investment just after the nation set an ambitious goal of raising its palm oil output by a third to 40 million tonnes by 2020.

Export-based rubber glove manufacturers such as Top Glove Corp Bhd and Supermax Corp Bhd may be closely watched amid a strengthening ringgit versus the US dollar. Shares of rubber glove manufacturers may also take cue from fresh updates on the Ebola outbreak.

While the Ebola outbreak could lead to higher rubber glove demand, a firmer ringgit versus the US dollar will translate into lower income for these companies when they convert their US dollar-denominated sales into ringgit.

Reuters reported that the Malaysian ringgit hit a near 10-month high after data showing stronger than expected second quarter economic growth.

The ringgit rose as much as 0.7% to 3.1580 per US dollar.

Tasek Corp Bhd will trade ex-dividend today. Cement manufacturer Tasek plans to pay an interim dividend of 40%, which translates into 40 sen a share, based on the stock’s par value of RM1 each.

The dividend payment date falls on Sept 9 this year.

This article first appeared in The Edge Financial Daily, on August 18, 2014.