Stocks to watch DFZ, John Master, Unisem (ext: Edge)

After the strong rally on Bursa Malaysia, which was underpinned by gains in big capitalised stocks, investors could be looking to lock in some of the profits.

Sentiment is still firm, but this could be dictated by how Wall Street will perform. Asian markets displayed some caution on July 28, and signs of profit taking are emerging as key indices ended off their highs.

Stocks to watch on July 29 include DFZ CAPITAL BHD [ ], JOHN MASTER INDUSTRIES BHD [ ] (JMI), CARLSBERG BREWERY MALAYSIA BHD [ ] (CBMB) and UNISEM (M) BHD [ ].

Duty-free outlet operator DFZ Capital posted a net profit of RM9.23 million for the first quarter ended May 30 on the back of RM120.27 million in revenue. But there could be some concern over its share buybacks.

DFZ had said it bought back 3.41 million of its shares from the open market at an average price of RM3.55. The share buyback, including transaction costs, were RM12.15 million and financed by its own funds. Its accumulated losses were RM88.33 million as at June 30.

JMI resumes trading after a one-day suspension to announce a corporate exercise which included a capital repayment and reduction exercise that will return RM77.5 million cash, or 63 sen per share to shareholders.

Unisem may draw some interest as it posted stellar results with RM23.99 million net profit for 2Q09 after two quarters of losses. It expects to remain profitable for the rest of the year.