Stocks to watch: Gamuda, UMCAA, Nestle, CI Holdings, Hirotako

KUALA LUMPUR: Blue chip may edge up on Thursday, April 22, with interest seen in selected stocks including consumer companies such as NESTLE (M) BHD [] and CI Holdings Bhd but the overall market breadth is expected to cautious after the late selling the previous day that dragged the key FBM KLCI into the red.

On Wall Street, U.S. stocks finished little changed on Wednesday, April 21 as disappointing outlooks from healthcare companies offset strong earnings from Morgan Stanley and Apple Inc, according to Reuters.

The Dow Jones industrial average edged up 7.86 points, or 0.07 percent, at 11,124.92. The Standard & Poor's 500 Index dipped 1.23 points, or 0.10 percent, to 1,205.94. The Nasdaq Composite Index inched up 4.30 points, or 0.17 percent, to 2,504.61.

At Bursa Malaysia, stocks to watch are GAMUDA BHD [] and related water stocks, UNITED MALACCA BHD [] and HIROTAKO HOLDINGS BHD [].

While Gamuda's latest bid to consolidate the water industry in Selangor has been viewed positively by industry observers, the deal is unlikely to go through anytime soon as the other major players in the industry have yet to show acceptance of the proposal.

UMCAA is planning to invest RM100 million over the next few years in its 35,000-acre (14,000ha) semi-planted estates in Keningau, Sabah, said its group financial controller Susan Lai Swee Kee.

CI Holdings, which wholly-owns beverage manufactuer Permanis Sdn Bhd, reported an impressive set of results for its 3QFY10 ended March 31 that saw its earnings more than double year-on-year to RM10.86 million.

Revenue had also increased for the franchise holder of brands such as Pepsi, 7-Up, Gatorade and Lipton. The better performance could be attributed to better contributions from its beverage division, while its businesses in plumbing fixtures also showed signs of growth.

Hirotako Holdings Bhd is rewarding shareholders by distributing one treasury share for every 35 shares held. The book closure date for the share dividend is May 6.

Nestle (M) Bhd reported revenue and net profit for the food and beverage company went up, by 3.7% and 38% respectively. Earnings for the quarter came in at RM138.8 million while turnover was RM1 billion. The company attributed the improved performance to its strategy of increasing its manufacturing capacity and brand-building during the downturn last year

PACIFICMAS BHD [] has received Bank Negara Malaysia's (BNM) approval to start talks with Great Eastern Group to dispose of its unit The Pacific Insurance Bhd.

Bursa Malaysia Securities directed embattled shipping-related company MALAYSIAN MERCHANT MARINE BHD [] (MMM) to "immediately engage" external auditors, Messrs Ernst & Young, to commence an audit of the company's financial statements for the fiscal year ended March 31, 2010.

SUNRISE BHD [] scored two wins in the Best Residential High-Rise Development award for its 28 Mont'Kiara project at the Asia Pacific Property Awards 2010 that was held in Hong Kong recently.





MTD Capital will pay its partner Philippine National CONSTRUCTION [] Corp (PNCC) a sum of Php422.5 million (RM30.5 million) after the parties signed a handover agreement pertaining to the disputed South Luzon Expressway project yesterday.

The sum comprised of payments due to PNCC under a JV to undertake and maintain the highway. MTD and PNCC's relationship soured last year after a dispute over who would control the highway.

MTD said the handover of the operations and maintenance of the highway would take place effective May 2, 2010. PNCC had previously held a 30-year concession over the highway, which expired in 2007.



PERISAI PETROLEUM TEKNOLOGI [] Bhd will also be in focus following the completion of a 19% stake in the company to Singapore-listed Ezra Holdings Ltd’s unit HCM Logistics Limited by its former managing director Nagendran Nadarajah, who was re-designated non-executive director.