Stocks to watch Proton, MISC, KSL, Faber, TA Global, DNP

KUALA LUMPUR: Trading on the local bourse got off to a slow start this week despite the country's better-than-expected gross domestic product (GDP) numbers in the third quarter, which contracted 1.2% year-on-year.

Stocks are still expected to trade mostly sideways after last week's consolidation, according to an OSK Research report. The stock market closed 3.5 points lower at 1,270.9 points on Nov 23.

However, more data coming from the US later this week on home sales, unemployment and consumer confidence may boost investor sentiment if things appear to be looking up.

Stocks to watch on the local bourse include PROTON HOLDINGS BHD [], MISC BHD [], KSL HOLDINGS BHD [], FABER GROUP BHD [], UTUSAN MELAYU (M) BHD [], BOUSTEAD HOLDINGS BHD [], TA Global Bhd and DNP HOLDINGS BHD [].

Proton Holdings Bhd yesterday announced improved results for its second quarter ended Sept 30, 2009. It also hinted at an announcement involving a strategic tie-up "very soon" although it declined to provide further details.

The national car-makers posted a net profit of RM82.06 million, double that from RM43.81 million reported in 2Q08.

MISC Bhd has proposed to raise RM5.21 billion via a renounceable rights issue of 743.97 million new shares on the basis of one rights share for every five shares at an issue price of RM7 each.

Despite a poorer performance in its third quarter ended Sept 30, 2009, MISC expects its earnings from long-term charters in the LNG and offshore businesses to cushion the downward pressure on falling rates in petroleum, chemical and container shipping.

KSL shares will also be in focus following the Federal Court ruling on Nov 23 on a legal case involving its subsidiary KSL Realty Sdn Bhd.

The Federal Court dismissed KSL Realty's application to review a decision by another court panel that disallowed the company from appealing the Court of Appeal's decision to overturn a High Court decision in favour of KSL Realty against Danaharta Hartanah.

The four-year court battle has been ongoing over parcels of land measuring 1,516 acres in Johor.

Faber Group Bhd (FBG) is also in focus following its RM142.1 million one-year contract to upgrade and develop infrastructure facilities at Madinat Zayed Zone-1 in Abu Dhabi, with renewal options.

Assuming the contract is renewed annually for an additional four-year period, the total contractual sum will amount to RM710.5 million. The contract is expected to contribute positively to the group's earnings for the year ending Dec 31, 2009.

Malay-language news group Utusan Melayu (Malaysia) Bhd announced a rise in net profit to RM8.28 million for its third quarter ended Sept 30,2009 from RM33,000 a year earlier due to lower costs.

Utusan saw higher pre-tax profit of RM10.1 million on-quarter against RM300,000 in 2Q09. Revenue rose 5.7% qoq from RM84.7 million mainly due to higher higher advertising revenue.

Meanwhile, Boustead Holdings Bhd, saw net profit picking up 84% to RM86.2 million in 3Q ended Sept 30, 2009 from the preceding quarter. However, this is still significantly lower from the RM164 million a year earlier. Its revenue also showed a slight pick-up of 11% from 2Q09 to RM1.42 billion.

TA Global Bhd, the newly-listed property development arm of TA ENTERPRISE BHD [] is also in focus as its leaders announce plans to look beyond hotels and commercial buildings in Canada and Australia.

Shares of TA Global made its debut yesterday, at an opening price of 50 sen per share. It closed at 47.5 sen on a volume of 38.73 million.

DNP Holdings Bhd, which posted a 22.6% rise in net profit to RM9.8 million for the first quarter ended September, has acquired 9.4 acres of leasehold land in Pekan Penaga in Petaling Jaya worth RM56 million to expand its landbank.

The group expects to see an improvement across the board for its property development and manufacturing divisions as the economy exhibits signs of recovering.

Written by Melody Song