KUALA LUMPUR: OSK HOLDINGS BHD []'s net profit for the first quarter ended March 31, 2010 surged to RM32.24 million from RM3.96 million a year ago, mainly due to improved earnings from the business expansion, particularly in investment banking activities.

Its revenue for the quarter jumped 86% to RM245.46 million, up from from RM131.67 million a year earlier.

Earnings per share was 3.91 sen, while net assets per share was RM1.52.

On its current year prospects, OSK Holdings said recent economic indicators suggest that the domestic economy is on a recovery path.

"While we achieved positive growth in early 2010, the growth momentum of the economies where we operate in is likely to soften in the later part of 2010.

"The easy liquidity conditions in our system, coupled with the government's policy to spur private sector growth could have some positive spillover effect into the capital markets in the form of fund-raising activities," its report said.

However, OSK Holdings said the ongoing uncertainties in Europe and the fear of contagion have led to increased market volatility lately.

Although policymakers have to some extent responded promptly and decisively to continuing concerns of sovereign risk in Europe, the final outcome remains uncertain, it said.

"Therefore, as the US and regional Asian economies continue on their cyclical recovery path at this juncture, unsettled financial markets over time could potentially soften the global economic recovery.

"Barring negative outcome of external factors, the board expects the group's results to remain satisfactory for the rest of 2010," it said.