INVESTMENT holding company, Avenue Assets Bhd, expects to return to the black for the financial year (FY) ending Jan 31, 2003, its managing director Gooi Hoi Soon said.
He believes the group can turn around due to the better performance of the stock market during the third financial quarter even though sentiment was quite bearish in the fourth quarter.
For the nine months ended Oct 31, 2002, the company posted a lower pre-tax profit of RM3.12mil compared with RM6.179mil registered previously.
For FY2002, the company posted a lower pre-tax loss of RM19.14mil compared with a pre-tax loss of RM113.04mil in 2001.
Gooi said that about 60% of the companys turnover was derived from stockbroking and the remaining from unit trusts and asset management.
Going forward, Avenue Assets is poised to provide a full range of financial service.
We are on the way to achieve our mission (to provide full range of financial services). Getting the universal brokers status is the first step to position ourselves to go further in the capital market, he said.
Avenue Assets had four stockbroking houses, namely in Kuala Lumpur, Ipoh, Penang and Muar, and had no immediate plan to open up new branches, he said.
The volume (stock market) is not very encouraging at the moment, nevertheless we have also to prepare ourselves for the challenging time once the market turns around, Gooi said.
On unit trust sector, he said that there was a huge potential to tap on, as only 10% to 11% of the market capital was held by unit trust business.
Currently, Avenue Assets manages six unit trust funds totalling RM710mil. Bernama