Stocks to watch: MRCB, Genting, MBSB, Scomi Group

KUALA LUMPUR: The firmer close on Wall Street, with the Dow Jones industrial average crossing 10,000 for the first time in two week, could see investors increasing their risk appetite for equities on Friday, Nov 6.

However, the gains could be limited ahead of the weekend as investors tend to square off their positions.

Nevertheless, the broad-based gains on Wall Street should bolster sentiment. US stocks jumped on Thursday, Nov 5 pushing the S&P 500 up for a fourth day, boosted by economic data. Strong results from Cisco Systems suggested a rebound in TECHNOLOGY [] spending, according to a Reuters report.

The DJIA rose 203.82 points, or 2.08%, to end at 10,005.96. The Standard & Poor's 500 Index gained 20.13 points, or 1.92%, to 1,066.63. The Nasdaq Composite Index rose 49.80 points, or 2.42%, to close at 2,105.32.

Stocks to watch today are MALAYSIAN RESOURCES CORP [] Bhd (MRCB), MALAYSIA BUILDING SOCIETY BHD [] (MBSB),GENTING BHD [] and SCOMI GROUP BHD [].

MRCB has proposed a renounceable rights issue to raise up to RM566 million. The rights shares could be issued at RM1.172 each, a discount of about 9.8% to the theoretical ex-rights price of MRCB shares of RM1.30,based on the three-month weighted average market price of about RM1.36.

The basis for the proposed rights issue is one rights share for every two existing MRCB shares held at the entitlement date.

MBSB's net profit for the third quarter (3Q) ended Sept 30, 2009 jumped 565% to RM52.68 million from RM7.92 million a year ago due to higher net interest income, the recovery of a major account and lower allowance for loans and financing losses.

Genting chairman and chief executive Tan Sri Lim Kok Thay has said its S$6.6 billion integrated resort, Resorts World at Sentosa, was on track to open in January. He added Genting was mulling to dispose of its non-core assets but it would not be a fire sale.


Scomi Group Bhd's net profit rose 19% rise in net profit to RM22.98 million in its third quarter (3Q)  from RM19.33 million a year earlier mainly due to the contribution from the energy and logistics engineering division.

Other stocks to watch include UAC BHD [], MTD CAPITAL BHD [], RCE CAPITAL BHD [], MBM RESOURCES BHD [] and Perusahaan Sadur Timah Malaysia Bhd (Perstima).

Building and CONSTRUCTION [] materials maker UAC Bhd’s net profit fell 13.56% to RM3.7 million in its third quarter ended Sept 30, 2009 (3QFY09) from RM4.28 million a year earlier due to both lower sales and margins.

RCE Capital's net profit for 2Q rose 16% to RM18.91 million from RM16.28 million a year earlier. Its net loan receivables grew by 30% from a year ago, adding that it managed to maintain the healthy growth in net loan receivables due to initiatives taken in expanding its product offerings.

MTD Capital Bhd group has proposed to dispose of PROPERTIES [], including the Shell building here to a subsidiary of its major shareholder, Haluan Gigih Sdn Bhd, for a total of RM175 million cash.

MBM Resources Bhd’s 3Q net profit fell 30% to RM22.49 million from RM32.15 million a year earlier on the back of a 3% decline in revenue to RM304.99 million from RM314.86 million.

Earnings per share dipped to 9.29 sen from 13.28 sen. MBM said yesterday profit from operations fell 49.7% to RM11.2 million while share of results of associated companies fell 2.8% to RM19.63 million.

Tin-plate maker Perstima posted a 173% jump in net profit to RM20.4 million in its second quarter (2Q) ended Sept 30, 2009 from RM7.47 million a year earlier due to lower cost and better contribution from a subsidiary, despite posting a lower revenue.

Perstima said the group’s operating environment was expected “to remain challenging and competitive” but it was confident that the group could achieve a better performance for the year ending March 31, 2010 mainly due to recovery of contribution by a subsidiary.