Stocks to watch: Public Bank, HL Bank, Scomi, Sunrise

KUALA LUMPUR: Investors should heave a sigh of relief on Tuesday, Nov 3 after US markets closed on a firmer note overnight following a fresh round of positive economic data.

However, the undertone of the market, though with some upside, would be cautious, as reflected in several sessions even though there was a spurt of recovery in US markets then. The broader market will remain lacklustre and interest focus would be on selected stocks.

On Wall Street, US stocks rose on Monday, Nov 2 after another round of solid economic reports but pulled off session highs after a Federal Reserve official's warning about banks' loan losses.

The Dow Jones industrial average gained 76.71 points, or 0.79%, to end at 9,789.44. The Standard & Poor's 500 Index climbed 6.69 points, or 0.65%, to 1,042.88. The Nasdaq Composite Index added 4.09 points, or 0.20%, to 2,049.20.

At Bursa Malaysia, stocks to watch are Public Bank, Hong Leong Bnk, SCOMI ENGINEERING BHD [], SUNRISE BHD []. Also on the watch list are Pilecon and Ho Hup.

Public Bank put an end to weeks of market rumours of a selldown when it issued a statement that its non-executive chairman Tan Sri Dr Teh Hong Piow has recovered from a minor operation and will not be selling his stake in the bank.

HONG LEONG BANK BHD [] is venturing into the consumer lending business in China through a 49:51 joint venture with its associate, Bank of Chengdu Co Ltd.

Scomi Engineering Bhd is teaming up with Geodesic Techniques Private Ltd to bid for the CONSTRUCTION [] of new monorail alignments in Bangalore.

Upbeat news from Sunrise are that the high-end property developer expects its current fiscal year real estate sales may surpass its previous year's numbers. Its executive chairman Tong Kooi Ong said this would be boosted helped by its upcoming launches.

In PPB GROUP BHD [], the PLANTATION []s company may utilise the RM1.29 billion proceeds from the sale of its sugar refining and trading business in Malaysia, to subscribe for shares in Wilmar China.

Ho Hup could see further downside, extending its losses from the 6.5 sen decline to 33.5 sen on Monday, after announcing a 20-into-one share capital reduction.

PILECON ENGINEERING BHD [] posted audited net loss of RM177.91 million in fourth quarter ended Dec 31, 2008 (4Q FY08) due to large provisions and write-offs. Unaudited 4Q net loss was RM798,000 only.

Written by Joseph Chin