Trading ideas: Selangor Dredging, BToto, Sapura Resources

KUALA LUMPUR: Selangor Dredging, Berjaya Sports Toto (BToto), Sapura Resources and Destini are among the stocks to watch on Wednesday, according to JF Apex Research.

 

The research house also expects Axiata, Scientex, Top Glove and Ire-Tex to generate trading interest following their corporate and results announcements.

 

Selangor Dredging is selling Wisma Selangor Dredging along with the land on Jalan Ampang for RM480mil cash to Golden Eagle Realty Sdn Bhd, for which it is expected to gain RM146.8mil at the group level.

 

BToto reported a 30% year-on-year drop in its 4QFY17 net profit, dragged mainly by its gaming operations in both Malaysia and the Philippines.

 

Sapura Resources is partnering Destini to strengthen its aviation business by expanding its customer base to include government and regional markets.

 

Meanwhile, Axiata is buying a Pakistani tower company for US$90mil (RM385.51mil) through its wholly-owned subsidiary, edotco Pakistan Pvt Ltd. The acquisition of Tanzanite Tower Pvt Ltd is expected to expand edotco’s presence in Pakistan with a sizeable portfolio of about 700 towers.

 

Scientex’s 3QFY17 net profit rose 8.6% yoy, driven by stronger exports in the group's manufacturing segment and higher progress billings for ongoing property development projects.

 

Top Glove intends to expand into the condom-manufacturing business by next year as the condom business is considered to be related to the rubber glove business.

 

Ire-Tex has failed to meet a deadline to pay the interest payment on its irredeemable convertible unsecured loan stocks that were issued in 2014, which may constitute an event of default.

 

Overnight, US markets tumbled dragged by energy counters following decline in oil prices.

 

Earlier, European stocks ended lower as oil price hit a seven-month low and Bank of England Governor's comment that rates are unlikely to rise anytime soon.

 

“Following the bearish performance in the US and Europe, the FBM KLCI could extend its decline towards the support of 1,760 points,” JF Apex said.