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Author: MalaccaSecurities   |   Latest post: Fri, 15 Oct 2021, 9:10 AM

 

Mplus Market Pulse - 17 Aug 2021

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Market Review

Malaysia:. The FBM KLCI (-0.2%) finished mildly weaker after rebounded off its intraday low amid the on-going political instability. The lower liners extended their losses, but broader market finished mostly higher with the utilities sector (+0.7%) anchoring the winners list.

Global markets:. The US stockmarkets managed to march higher after recovering from their intraday losses as the Dow and S&P 500 added 0.3% each, led by gains in utilities and healthcare sector. European stockmarkets turned downbeat, while Asia stockmarkets finished mostly lower. The Day Ahead The FBM KLCI edged lower despite bargain hunting activities in the latter of the trading session, as upside has been capped by concerns over lingering political uncertainty after Prime Minister’s resignation. While investors’ sentiment is expected to remain jittery given ongoing battle with Covid-19 pandemic, focus will be on the upcoming corporate earnings season with robust results. Commodities wise, the CPO continued to hover around the all-time high region, while the crude oil price fell below the USD70 level.

Sector focus:. Recovery theme sectors may still be in the limelight following the reopening of more non-essential sectors. We noticed consumer related, building materials and construction sectors are gaining momentum. Besides, the plantation sector may gain traction following the firm CPO price.

The FBM KLCI slipped to close just above the daily EMA9 level as well as the psychological 1,500 level. Technical indicators remained mixed as the MACD Histogram has extended a green bar, while the RSI continued hovering below the 50 level. Market may continue to trade in cautious mode, with next resistance envisaged at 1,520, while the support is set around 1,480.

Company Brief

Central Global Bhd is finalising the purchase of machinery that will more than triple the manufacturing capacity of industrial masking tapes at its factory in Kuala Muda, Kedah. The production capacity of its factory will be increased to 70.0m sqm of tapes per year from the current 20.0m sqm. He added that the purchase will allow the group to fulfil backlog orders worth RM10.0m from July 2021 and August 2021 that had been delayed due to the enhanced movement control order. (The Star)

Revenue Group Bhd’s indirect unit, Next Revenue Sdn Bhd, has entered into two conditional sale and purchase agreements with Starplus Corporation Sdn Bhd to acquire two pieces of land for RM44.0m. The first acquisition comprised two plots of leasehold land together with buildings valued at RM24.5m (Land One) while the second acquisition involved two plots of leasehold land together with buildings for RM19.5m (Land Two). Both landbanks are located in Mukim Batu, Kuala Lumpur. (The Star)

WCT Holdings Bhds unit, Jubilant Courtyard Sdn Bhd has disposed 602.5-ac of land in Serendah, Selangor for RM214.3m cash. The estimated total gain from the disposal was RM45.5m. The proposed disposal provides an opportunity for the Group to unlock and realise the value of the lands as well as to fund working capital (including business expansion) and/or repayment of bank borrowings of the Group. (The Star)

A consortium that includes Yinson Holdings Bhd has been awarded funding from the Singapore government to develop and commercialise a fully electric cargo vessel with interoperable swappable battery infrastructure solutions for the Port of Singapore. The three consortiums will embark on the research, design, building and operations of fully electric harbour craft over the next five years (The Edge)

HPP Holdings Bhd four manufacturing facilities in Melaka have resumed operations after a temporary suspension following the detection of Covid-19 cases among workers. The Ministry of Health approved the resumption of operations of located in Taman Teknologi Cheng effective 14th August 2021. (The Edge)

The Employees Provident Fund (EPF) appeared to have stepped up its Genting Plantations Bhd share borrowing to raise its stake via Bursa Malaysia's securities borrowings and lending (SBL) facility, as Genting Plantations' share price falls to its lowest in more than nine years. The EPF had raised its stake in Genting Plantations to 13.9% as at 6th August 2021, compared with 11.1% on 4th January 2021. (The Edge)

Mercury Industries Bhd has inked a deal with Aturan Prisma Sdn Bhd to develop houses on a freehold land in Melaka. The estimated total gross development value of the project is approximately RM152.3m with an estimated total gross development cost of RM105.6m. (The Edge)

QL Resources Bhd Indonesian subsidiaries, Pipit Mutiara Indah (PMI) and QL Mutiara (S) Pte Ltd, are being sued by a minority shareholder of PMI, PT Pipit Citra Perkasa (PCP), for alleged negligence in management. PCP claimed that the negligence had caused PMI to suffer eight years of continuous losses, which the minority shareholder claimed to have caused it to suffer losses as a result of not receiving any distributable dividends from PMI. (The Edge)

Evergreen Fibreboard Bhd’s 2QFY21 net profit stood at RM4.2m vs. a net loss of RM11.1m recorded in the previous corresponding quarter, attributable to higher revenue from panel boards and downstream products, lower operation cost due to better production efficiency and higher foreign exchange gain. Revenue for the quarter rose 23.4% YoY to RM213.3m. (The Edge)

Eden Inc Bhd's wholly-owned subsidiary Stratavest Sdn Bhd has entered into a power purchase agreement with Sabah Electricity Sdn Bhd to further extend the operation of Libaran Power Station for another three years. It had successfully fulfilled its obligations under the initial power purchase agreement for the 21-year term, up until 17th December 2019. (The Edge)

Syarikat Takaful Malaysia Keluarga Bhd (STMKB) group chief executive officer (CEO) Datuk Seri Mohamed Hassan Md Kamil is leaving the company at the end of his contract on 31st March 2022. STMKB will appoint an executive search consulting firm to assist with the succession planning exercise for Mohamed Hassan, who was appointed as the CEO in 2006. (The Edge)

Pos Malaysia Bhd’s 2QFY21 net loss swelled to RM121.8m, from a net loss of RM46.8m recorded in the previous corresponding quarter, as it suffered lower business volume across the board as a result of the Movement Control Order. Revenue for the quarter shrank 10.3% YoY to RM533.9m. (The Edge)

AEON Credit Service (M) Bhd has obtained Bank Negara Malaysia's approval to acquire insurance and takaful broking firm Insurepro Sdn Bhd for RM1.7m. The acquisition, which is expected to be completed in October 2021, will allow the group to distribute both commercial and personal insurance products by leveraging the AEON Group Retail network and ecosystem. (The Edge)

Ahmad Zaki Resources Bhd (AZRB) has appointed former auditor-general Tan Sri Dr Madinah Mohamad as an independent and non-executive director. (The Edge)

Mobilia Holdings Bhd has proposed a bonus issue of 3 new shares for every 4 held, together with free bonus warrants on the basis of 1 warrant for every 4 shares held. The proposals, expected to be completed by 4Q21, could involve the issuance of 300.0m bonus shares, and up to 175.0m warrants. (The Edge)

 

 

Source: Mplus Research - 17 Aug 2021

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