Stocks to watch: CIMB, Petra Perdana, Ann Joo, Lion Corp, Proton

KUALA LUMPUR: Stocks on Bursa Malaysia should start off on a firmer note on Tuesday, Nov 17, as investors' sentiment is bouyed by the fresh 13-month high closing on Wall Street, despite the weaker set of corporate earnings yesterday.

US stocks rose broadly on Monday, Nov 16, sending indices to fresh 13-month closing highs, after Federal Reserve Chairman Ben Bernanke reiterated interest rates would stay low to spur growth, according to Reuters.

Bernanke repeated that the Fed was likely to keep interest rates exceptionally low for "an extended period," a pledge that weighed on the U.S. dollar and drove investors to snap up shares of natural resource companies as prices of global commodities -- from gold to wheat -- shot higher.

The Dow Jones industrial average gained 136.49 points, or 1.33 percent, to 10,406.96. The Standard & Poor's 500 Index shot up 15.82 points, or 1.45 percent, to 1,109.30 -- its first close above the psychologically important 1,100 level for the first time since October 2008.

At Bursa Malaysia, stocks to watch include CIMB Group Holdings Bhd, PETRA PERDANA BHD [], ANN JOO RESOURCES BHD [], Lion Corp Bhd, PROTON HOLDINGS BHD [], AFFIN HOLDINGS BHD [] and HONG LEONG BANK BHD [].

CIMB shares surged to a hstoric high after it announced plans for a dual listing in Thailand. It rose 2.8% to close at RM13.28. It plans to offer 35 million shares to retail and institutional investors in an IPO which could up to RM452.2 million.

Petra Perdana Bhd made a net loss of RM8.9 million in the third quarter ended Sept 30, 2009, due to lower vessel utilisation, a decrease in charter rates, increased competition and fixed lease charter and higher mobilisation costs. It had made a net profit of RM19.38 million a year earlier.

Its executive chairman & CEO Tengku Ibrahim Petra however, was more optimistic about the outlook, pointing to the turnaround of the domestic and regional oil & gas markets.

"With oil prices stabilising between US$70 and US$80 per barrel, we expect drilling activities to pick-up in the near future, hence improving utilisation of our marine vessels. There is also a likelihood of charter rates increasing," he said.

Ann Joo Resources Bhd reported an 8.2% year-on-year decline in net profit to RM45.46 million in the third quarter (3Q) ended Sept 30, 2009, as revenue fell 38% to RM382.19 million from RM618.85 million a year earlier.

However, Lion Corp posted RM218.46 million net loss versus net profit of RM28.66 million a year ago, also due to lower selling prices of their steel products and lower sales volume. Revenue shrunk to RM794.68 million versus RM1.45 billion a year ago.

PARKSON HOLDINGS BHD [], however, reported marginally better earnings in 3QFY09, coming in at RM64.71 million against RM60.16 million a year earlier. It said the improvement was due to new store openings and same store sales growth.

Proton projects sales to hit 150,000 cars for the financial year ending March 31, 2010 in the domestic market and another 25,000 units in the overseas market. Managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir said his projection was based on the good response to the cars.

Affin Holdings Bhd denied yesterday that it was in any discussions for a merger between its banking arm, Affin Bank Bhd, and Hong Leong Bank Bhd.

It said while it continuously looked at measures to further enhance its performance and value for its shareholders, it was, at this juncture, not involved in any negotiations on any potential acquisition or merger relating to its banking operations.

Its share price rose to a 22-month high yesterday after The Edge weekly reported that the Guoco Group was exploring funding options for a takeover of Affin Bank.