Stocks to watch: Plantations, Crest Builders, S'gor Properties, WCT

Written by Joseph Chin
Tuesday, 29 December 2009 05:42

KUALA LUMPUR: Regional markets should extend their gains on Tuesday, Dec 29, aided by the firmer overnight close on Wall Street where the major indices ended trading at fresh closing highs for 2009.

The higher closing was underpinned by fresh optimism about the economic recovery. Investors were also optimistic that the year-end holiday shopping season could prove stronger than initially expected.

The Dow Jones industrial average rose 26.98 points, or 0.26%, to end unofficially at 10,547.08. The Standard & Poor's 500 Index added 1.30 points, or 0.12%, to 1,127.78. The Nasdaq Composite Index advanced 5.39 points, or 0.24%, to close unofficially at 2,291.08.

Both the Dow and the S&P 500 marked their highest closes in 14 months, and the Nasdaq notched its highest close in 15 months.

On Monday, most Southeast Asian stock markets ended higher, with Singapore approaching a 17-month high, while Indonesia and Malaysia edged up after Christmas holidays, with energy shares leading the way.

At Bursa Malaysia, the positive sentiment was seen in the higher closing of the FBM KLCI futures and also the crude palm oil (CPO) futures.

CPO futures for January delivery rose RM39 to RM2,535 while for February, it rose RM34 to RM2,571. The FBM KLCI futures rose 10 points to 1,274.

Stocks to watch include PLANTATION []s, Crest Builders, Selangor PROPERTIES [] and WCT.

Selangor Properties reported its 4Q net profit ended Oct 31, rose 9 % to RM35.85 million from RM32.9 million a year earlier as the company sold more properties, and trimmed operating expenses.

Revenue more than doubled to RM155.13 million from RM63.92 million, the real estate estate investor and developer said.

Cumulative full-year net profit, however, fell 72.8 % to RM32.3 million from RM118.55 million a year earlier, mainly due to a provision for impairment losses on the company's investment in real estate funds. Revenue rose 52.7% to RM321.72 million from RM210.64 million


CREST BUILDER HOLDINGS BHD [] has secured a RM175.5 million contract from Exceljade Sdn Bhd to build two 40-storey service apartment towers. The high rise residential project would be along Jalan Raja Muda Abdul Aziz.

It said the contract period was for 24 months and the contract is expected to be completed by Jan 1, 2012," the builder said. The project was expected to contribute positively to the earnings of the group for the financial years ending Dec 31, 2010 onwards.

WCT BHD []'s rating was revised to developing from negative by Malaysian Rating Corporation.

MARC said this reflects its decreased concerns regarding WCT’s ability to weather the setback caused by its terminated Nad-Al Sheba racecourse project, replenish its order book and restore its credit measures to levels consistent with its ratings.

ASTRO ALL ASIA NETWORKS PLC [] will supply and license a content gateway software system to Saudi Bells Telecom Company LLC (SBC), as well as build and develop the system in the Middle East and North African territories.