The market may continue to be in the doldrums on March 26 following the weaker economic outlook confirmed by Bank Negara and expected weaker earnings for corporations.
Stocks which could see trading interest include Maybank, TM International, AirAsia and Pelikan. Other stocks are Jaya Tiasa, George Kent and GoldIS.
Maybank saw investors continuing to take money off the table for the second day as analysts believe there are still headwinds facing the banking group. Its financial year ends June.
As for TMI, it could see some stability in share price, after being hammered down 32 sen to RM2.29 when it resumed trading on March 25. The one-day decline was the sharpest since its listing in April last year, especially after it fixed its rights shares at 57% below the last trading price.
AirAsia saw the Employees Provident Fund disposing of two million shares on March 19, reducing its total stake to 214.92 million shares or 9.05%.
In Pelikan, PBS Office Supplies Holding disposed of 5.5 million shares in the former from March 13 to 19, reducing its total stake to 76 million shares or 22.41%.
Jaya Tiasa’s net profit for 3Q ended Jan 31, 2009 fell 98% to RM152,000 from RM7.47 million a year, as it was affected by a sharp fall in sales and prices of timber products.
George Kent’s 4Q net profit was RM4.92 million, a sharp improvement from RM1.23 million a year ago as the water meters and waterworks fittings manufacturer benefited from higher profit margin items.
GoldIS saw its 4Q earnings surge to RM10.9 million from RM261,000 a year ago despite a slight decline in revenue. The earnings were also given a boost by its associate, IGB but going forwards, it sees challenging times due to uncertain economic conditions.
OSK Research was pessimistic about the outlook for the property sector due to collateral damage from the severe financial crisis on the real economy and the trading partners.
“The embattled domestic economy, which is already under pressure from a supply cycle that looks likely to last beyond 2009, would not be able to effectively absorb the tide of incoming new supply during the period, especially at current valuations.
“This will exert immense downward pressure on rental rates and real estate prices. The correction in the real sector is likely to bottom only in 2010, if not later, until market prices find a new equilibrium at the lower levels,” it said.
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