Stocks to watch: Tenaga, Jetson, Octagon, SP Setia

KUALA LUMPUR: Investors will have to brace for another volatile market on Tuesday, Oct 27, after US stocks fell for a second straight session but selected stocks could attract positive interest including Tenaga, Octagon Consolidated and SP Setia.

On Wall Street, US investors ditched home builders and financials on fears lawmakers may let a federal home buyer tax credit expire, while commodity shares succumbed to pressure from the higher U.S. dollar

The Dow Jones industrial average dropped 104.22 points, or 1.05 percent, to 9,867.96. The Standard & Poor's 500 Index shed 12.65 points, or 1.17 percent, to 1,066.95. The Nasdaq Composite Index fell 12.62 points, or 0.59 percent, to 2,141.85.

At Bursa Malaysia, Tenaga could rise after it posted 4Q net profit of RM133.4 million versus net loss of RM281.3 million a year ago. The power giant sees a challenging year. It recommended 10 sen dividend and a special tax-exempt of 2.5 sen.

Octagon is selling the technical documents for the design, engineering for waste-to-energy plant in Colombo, Sri Lanka for RM40 million.

SP Setia's subsidiary is teaming up with Vietnam;s Investment and Industrial Development Corporation to undertake a US$16.2 million mixed-development project in Vietnam.

REDTONE INTERNATIONAL BHD [] made a net profit of RM1.19 million in the first quarter ended Aug 31, 2009, compared to a net loss of RM354,000 a year earlier, on positive contributions from its broadband business and Chinese operations.

Profit taking could set in after the surge in the securities of KUMPULAN JETSON BHD [] on a news report that its sister company could bag a massive development project in Kuala Lumpur.

However, of concern is whether the stock is running ahead of fundamentals and whether the project will be viable.

However, the stocks could be supported by its plan to team up with Medallion Builder Sdn Bhd, which secured a RM104 million contract to revive a housing project in Bukit Cerakah, Kuala Selangor.