The Star Online: Business
The Star Online: Business |
- FBM KLCI down in early trade
- UOB Kay Hian: CIMB profit estimate reduced on lower loans growth
- MSC posts higher profit
| Posted: 10 Aug 2011 07:45 PM PDT KUALA LUMPUR: The FBM KLCI was down 6.74 points, or 0.46% at 1,473.78 in early trade on Thursday, as local investors took profit following the overnight tumble seen on Wall Street. Turnover was 329.72 million shares done valued at RM578.35 million. There were 131 gainers, 465 losers and 172 stocks unchanged. HwangDBS Vickers Research said in a report issued today that the market rebound seen yesterday may be short-lived as the local bourse is likely to surrender all its gains and more following Wall Street's overnight collapse. The benchmark FBM KLCI could tumble towards the support zone of 1,415 to 1,435. "Investors will be looking to dump shares across the region today after major US equity indices plunged between 4.1% and 4.6% last night," HwangDBS said. Essentially, market sentiment was hit hard amid mounting worries that there would be spillover effects from possible fallout from the prevailing European debt crisis. "With the number of declining stocks set to overwhelm advancing ones back home, hoping to buck the bearish trend is Malaysia Airports. The stock may react to a media report that airport taxes could be raised from next month," it added. Meanwhile, regional peers were mixed in their early trade with Shanghai SE Composite gained 0.24% to 2,555.31, Kopsi increased 0.81% to 1,820.92 and Singapore's STI down 1.45% to 2,780.26. The ringgit against the US dollar was quoted at 3.0104 against yesterday's close at 3.0071. Crude oil was down at US$82.83, from yesterday's close of US$82.89. Palm oil futures on the Malaysia Derivatives Exchange was up RM9 at RM2,946 per tonne. Full Feed Generated by Get Full RSS, sponsored by Used Car Search. |
| UOB Kay Hian: CIMB profit estimate reduced on lower loans growth Posted: 10 Aug 2011 05:06 PM PDT PETALING JAYA: Earnings forecast for CIMB Group Holdings Bhd has been reduced by 2% to 3.2% for the next two financial years to take into account lower loans growth. In lowering its forecast, UOB Kay Hian said that following a recent downward revision of CIMB's loans growth target from 18% to "low to mid-teens" for this year, it was putting the loans growth target for CIMB from 18% to 15% for this year. "We fine tune our net profit forecasts for this year and next year accordingly," it told clients in a report yesterday. CIMB had lowered its loans growth target amid an intensifying price war for mortgage loans in Indonesia - where it has operations via its 97.7% owned unit, PT Bank CIMB Niaga Tbk. That said, the research house is expecting CIMB to post a 7% to 9% year-on-year increase in its net profit for its second quarter ended June 30 - due to be announced before the end of the month. This was on track to meet its return on equity guidance of 17%, UOB Kay Hian said, adding that quarter on quarter, CIMB was expected to post an increase of between 4% to 6%. CIMB posted a net profit of RM889.5mil for its second quarter ended June 30, 2010; for the first quarter ended March 31 this year, the group's net profit was RM916.5mil. CIMB Niaga recorded a 12.5% quarter-on-quarter increase to Rp819bil in its net earnings for its recently concluded second quarter compared with a flattish quarter-on-quarter net earnings in the first quarter. Kenanga Research, in its note, said CIMB Niaga's outlook should remain "positive" this year in light of the accelerating balance sheet growth strategy, supported by its recent capital raising exercises. Balance sheet and earnings growth rates are likely to remain strong in 2011 and CIMB Group should continue to benefit, despite the risk of margin squeeze, Kenanga said. In its report, AmResearch said it was not revising downwards its forecasts "at the moment" "CIMB Niaga has historically been able to record quarter-on-quarter increase in net earnings and we expect the trend to continue," the research house said. Full Feed Generated by Get Full RSS, sponsored by Used Car Search. |
| Posted: 10 Aug 2011 05:05 PM PDT KUALA LUMPUR: Tin producer Malaysia Smelting Corp Bhd (MSC) posted a higher net profit of RM36.3mil in the second quarter ended June 3O compared with RM7.98mil a year earlier due to higher profit from its tin mining and smelting operations in Malaysia and Indonesia as well as higher tin prices. Revenue for the period rose to RM853mil versus RM623mil while earnings per share were 36 sen against 10.6 sen. The group had proposed an interim dividend of 12 sen per share less 25% tax per share payable on Sept 28. Meanwhile, at a media briefing yesterday, group chief executive Datuk Seri Dr Mohd Ajib Anuar said the group was hoping to acquire new and existing mines projects in Malaysia and Indonesia. "We are hoping to get the approvals and getting the licences for some of the mines this year and some next year," he said, adding that the mines were not that big in size and capable of producing 100 to 200 tonnes per month. As for the second-quarter results, Mohd Ajib said the group expected the overall performance to remain profitable in the second half of 2011 despite the current market volatility and uncertain short-term outlook. He also said MSC was optimistic about the long-term prospects of the tin industry and believed that the group would be able to capitalise on the strong global tin market fundamentals to expand its business. Full Feed Generated by Get Full RSS, sponsored by Used Car Search. |
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