Stocks to watch: TdC, DiGi, Genting, KLK

Written by Joseph Chin
Thursday, 27 August 2009 07:26

KUALA LUMPUR: Broader market sentiment could perk up on Aug 27 after the fresh batch of data from Bank Negara that the Malaysian economy was on the mend and on the road to recovery after 2Q GDP shrank less than expected.

In 2Q, GDP contracted by 3.9% from a year ago, but the worst was over as the economy showed a slower decline from the contraction of 6.2% in 1Q. On a quarter-on-quarter basis, the economy expanded 4.8%.

However, there is likely to be an absence of overseas leads after US investors stayed cautious as stocks little changed despite solid reports on new home sales and durable goods orders.

The Dow Jones industrial average rose 0.04% at 9,543.52 while the broader Standard & Poor's 500 Index and Nasdaq Composite Index were marginally higher at 1,028.12 and 2,024.43.

Stocks to watch include TIME DOTCOM BHD [] (TdC), GENTING BHD [], KUALA LUMPUR KEPONG BHD [], IOI Corp following fresh corporate developments.

TdC sold another 27.75 million shares in DIGI.COM BHD [], or a 3.6% stake, via a private placement for RM604.95 million or RM21.80 per share. This reduced TdC's stake in DiGi to 27.5 million shares or 3.5%.

Genting's 2Q net profit fell 26.3% to RM214.5 million from RM291.04 million a year ago due to lower profits in most divisions.

KL Kepong's net profit declined 22.4% to RM190.24 million in its 3Q ended June 30, 2009 from a year ago, impacted by the decline in crude palm oil (CPO) prices.

IOI Corp's 4Q earnings fell 18.4% to RM487.07 million compared with RM597.28 milion a year ago following an impairment loss of RM242.8 million for a development property in Singapore. Read more...