Wednesday January 9, 3:37 PM
MARKET TALK/SG/KL: ST Engine FY01 Worse Than Expected
sg.biz.yahoo.com
1536 [Dow Jones] SINGAPORE: ST Engineering (Singapore: STEG.SI - news)'s (S63) forecast of flat FY02 earnings is conservative and departure from usual norm giving rosy projections, says NetResearch; says detailed examination of FY01 results points to worse-than-expected earnings from all divisions - Kinetics, Marine and Electronics - although analysts earlier thought Aerospace was the only problem area due to Sept 11 attacks in U.S. Stock down 9% at S$2.33 on volume of 39.6 million shares.(EYG)
1530 [Dow Jones] MALAYSIA: Commerce Asset-Holding (1023) up 2% at MYR7.85 on news unit Bumiputra-Commerce Bank sets up new company, EPIC-I, to provide IT and backroom processing services. It will also take on third-party business from outside group. EPIC-I to have MYR120 million initial assets, to operate at estimated cost of MYR270 million/year. It will be a profit-generating company, says BCB, No profit estimates given.(NIM)
1524 [Dow Jones] MALAYSIA: IJM Corp (3336) shares down 6.2% at MYR3.94 on announcement late yesterday company expects unrealized forex loss of about MYR27 million due to devaluation of Argentine peso. Construction group owns almost 20% of toll company Groupo Concessionario del Oeste, which operates highway near Buenos Aires. IJM says toll rates may be renegotiated to compensate for losses from devaluation. Trader says some profit-taking also kicking in after recent gains.(TUP)
1519 [Dow Jones] SINGAPORE: STI down 1.1% at 1684.6 on index-linked profit-taking after recent sharp gains. Index falls led by ST Engineering (S63), on cautious outlook, and banks, which had rallied recently. Broad market higher, with rises leading falls 334 to 274 with 291 stocks flat/untraded; volume moderate at 500 million shares. Some late bargain-hunting likely to help STI close near key 1700 level, traders say.(AXH)
1503 [Dow Jones] SINGAPORE STOCK CALL: ING Barings keeps Buy rating on ST Engineering (S63). Says earnings broadly in line with expectations. Maintains FY02 earnings forecast; expects marginal growth to S$357 million. Adds management has reaffirmed that commercial aerospace volumes and margins remain resilient.(AXH)
1449 [Dow Jones] MALAYSIA STOCK CALL: CIMB Research keeps Neutral call on DiGi.com (6947); analyst says company is niche player with strong shareholder and financial position but strength eroding; competitors Maxis and TM Touch closing in fast with their own prepaid services. DiGi also lacks product differentiation, unlike TRI (4197). Believes long-term prepaid market share will be capped at 20% from current 15% as competition increases. Values stock at MYR4.93/share. DiGi down 0.9% at MYR5.35.(VGB) |
