Trading ideas: Petra Energy, EG Industries, Hartalega, TH Heavy


KUALA LUMPUR: Petra Energy Bhd , EG Industries Bhd , Hartalega Holdings Bhd and TH Heavy Engineering Bhd are among the stocks to watch on Wednesday, according to JF Apex Research.


Petra Energy achieved a net profit of RM1.72mil for its first quarter ended March 31, up 68.3% from RM1.02mil a year ago due to higher activities in its services segment, particularly those in the Hook up, Commissioning and Top-side Major Maintenance (HuC/TMM) contract with Petronas Carigali Sdn Bhd.


EG Industries said its subsidiary SMT Technologies Sdn Bhd will form a joint venture with Taiwan-based Quanta Storage Inc to undertake manufacturing works for Western Digital.


Hartalega’s net profit for the fourth quarter ended March 31, 2019 fell 22% year-on-year to RM91.36mil from RM116.65mil, despite higher revenue, no thanks to increased costs and a sharply stronger ringgit during the quarter.


TH Heavy Engineering announced that its unit Floatech (L) Ltd had received a writ of summons filed by Drydocks World - Dubai LLC on April 23, demanding Floatech to pay the sum of US$6.22mil (approximately RM25.82mil).


Overnight, US markets plunged following escalating trade tension between the US and China.


Earlier, European stocks tumbled after a top US official indicated that higher tariffs will be imposed on Chinese goods later this week.


“Following the bearish market in the US and Europe, the FBM KLCI could trend lower towards the support of 1,615 points,” JF Apex said.