Stocks to watch Favelle Favco, LFIB, SCIB, Zecon, KNM

KUALA LUMPUR: Key regional markets may take the cue from the US and European markets’ tepid sentiment and trade cautiously ahead of the weekend on Friday, July 28 as a confluence of factors including deadlock over raising the debt ceiling and a decline in durable goods orders in the US could kept investors on the sidelines.

Asian markets were mixed on Thursday, as while on the one hand 27 China’s industrial profits 28.7% in the first half from a year earlier to 2.4 trillion yuan (about US$373 billion), lifting sentiment at some of the markets, worries of the US debt woes dragged others.

Investor sentiment has been see-sawing this week as a Republican plan to cut the US deficit met stiff opposition, reducing the chances of a late compromise to avoid a crippling debt default.

Among the stocks to watch on Bursa Malaysia today are FAVELLE FAVCO BHD [], Sarawak Consolidated Industries Bhd (SCIB), LION FOREST INDUSTRIES BHD [] (LFIB), ZECON BHD [], KNM GROUP BHD []

Favelle Favco Bhd secured four separate contracts worth a combined RM79.3 million to supply offshore cranes, a tower crane and winches.

It said on Wednesday, July 27 that its subsidiaries Favelle Favco Cranes (M) Sdn Bhd, Favelle Favco Cranes Pty Ltd, Favelle Favco Cranes Pte Ltd and Favelle Favco Winches Pte Ltd had received the purchase orders or letters of intent from their clients.

SCIB said it was not aware of any any corporate developments or rumours concerning its business that caused of the unusual market activity (UMA) in the company’s shares on Wednesday, July 27.

It said this in response to Bursa Malaysia Securities Bhd’s UMA query to the company earlier in the day after the stock hit limit-up in the morning trading session.

LFIB has proposed to acquire a parcel of land in Cambodia for RM11.77million as part of its plan to seek new opportunities to cultivate rubber, palm oil and other industrial crops in Southeast Asian countries.

It said on Wednesday, July 27 that its wholly owned unit Harta Impiana Sdn Bhd had identified a parcel of 9,995ha economic land concession in the Preah Vihear Province and was proposing to procure a minimum 70-year concession period from the Cambodian government to cultivate the land.

It said the land is for the purposes of cultivation and planting of oil palm and/or rubber trees.

Meanwhile, Zecon and KNM could see continued interest following the recent news of their JV for a multi-billion ringgit integrated petrochemical complex in Teluk Ramunia.