The Star Online: Business
The Star Online: Business |
- Stocks waver dollar pushes higher ahead of Fed meeting
- RHB Research maintains Buy on Ahmad Zaki Resources
- Malaysia’s KLCI down in early trade, banks dip
| Stocks waver dollar pushes higher ahead of Fed meeting Posted: [unable to retrieve full-text content]TOKYO(Reuters): Stocks wobbled and the dollar index edged up from a five-week low on Tuesday as investors positioned for the Federal Reserve's monetary policy meeting at which it might offer clues to the timing of its stimulus reduction. |
| RHB Research maintains Buy on Ahmad Zaki Resources Posted: KUALA LUMPUR: RHB Research is maintaining its Buy call on Ahmad Zaki Resources Bhd (AZRB) with a fair value of RM1.47 after it won a suit over a contract dispute in Saudi Arabia and was awarded RM79.6mil. The research house said on Tuesday that due to improved sentiment post the 13th General Election, it saw sustained interest in small-cap construction stocks. "We also like Ahmad Zaki's defensive non-construction businesses such as bunkering and plantations," it said. To recap, Paris-based International arbitrator, International Chamber of Commerce, ordered Alfaisal University/King Faisal Foundation to pay AZRB RM79.6mil over the latter's claims in an arbitration case involving a construction contract for Phases 1 & 2 of Alfaisal University Campus in Riyadh, Saudi Arabia. RHB Research described the award as good news for AZRB as the company could now write back the entire amount as an exceptional gain, which will translate into 29 sen per share. "When the contract ended in dispute in FY10, AZRB bit the bullet by making full provisions for additional costs incurred by the project amounting to RM93.6mil in its FY10 accounts. This resulted in a record net loss of RM61.6mil for that year. "We maintain our estimates as we exclude one-off items in our forecasts and await full settlement of the award. Assuming the award is paid, the RM79.6mil cash inflow will significantly reduce AZRB's net debt and gearing of RM109.5mil and 0.52 times respectively as at March 31, 2013 to RM29.9mil and 0.1 times," said RHB Research. The research house said it liked AZRB's strong earnings visibility, backed by its RM2.2bil-strong outstanding construction orderbook as well as two lucrative concessions with a minimum project IRR of 8% in the RM413mil International Islamic University Malaysia (IIUM) campus in Kuantan now under construction, and the RM1.55bil East Klang Valley Expressway (EKVE), which is pending financial close. "Upon financial close, the EKVE will generate about RM1.5bil worth of internal construction works for AZRB, as well as substantially boost its outstanding construction orderbook to RM3.7bil," it said. |
| Malaysia’s KLCI down in early trade, banks dip Posted: [unable to retrieve full-text content]Malaysia's blue chips traded lower early Tuesday, with profit taking seen in key bank stocks like CIMB and Maybank amid a mixed market. |
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