Highlights

jfapex

Author: jfapex   |   Latest post: Thu, 21 Jan 2021, 11:04 AM

 

Daily Highlights-21 January 2021

Author: jfapex   |  Publish date: Thu, 21 Jan 2021, 11:04 AM


Market Thoughts

 

US markets rallied overnight as President Joe Biden was sworn into office, while a slew of strong corporate earnings boosted sentiment on Wall Street. Earlier, European stocks closed higher on Wednesday, ahead of the inauguration of President-elect Joe Biden.

On the local market, the FBM KLCI ended flat after shedding 0.34 points to 1601.54 points. Following the bullish performance in Wall Street, the FBM KLCI could follow suit and stage a rebound with support at 1590 points. 

 

Stocks to watch are: Cymao has secured a subcontract worth RM134.02 million for a proposed mixed development project at Wilayah Sungai Kelian Baru, Mukim Batang Padang in Perak; Fintec Global has reached an agreement with Robayu Corporation to enter into a memorandum of agreement to supply medical grade gloves in Europe; Zhulian’s net profit rose 49% to RM13.55 million for the fourth quarter ended Nov 30, 2020, from RM9.1 million a year earlier, thanks to higher revenue. With better earnings in the quarter, the group declared a fourth interim dividend of three sen per share, as well as a special dividend of five sen per share, amounting to a total of eight sen; Axis REIT saw its net property income (NPI) for the fourth quarter ended Dec 31, 2020 rise 8.31% to RM51.11 million from RM47.19 million a year earlier, thanks to higher revenue; Hibiscus Petroleum said the UK Oil and Gas Authority (OGA) had yesterday (Jan 19) advised that two of the three licence agreements pursuant to the OGA’s offer for award received by Hibiscus’ indirect wholly-owned subsidiary Anasuria Hibiscus UK Ltd have been fully executed. Hibiscus said the licence agreement for the third offer is in the process of being fully executed; Widad’s major stakeholder Widad Business Group Sdn Bhd, an integrated facility management, property and construction conglomerate, is planning to build a mixed development project in Pulau Langkawi with an estimated gross development value of RM40 billion. The group said the project, dubbed Widad@Langkasuka, is expected to be completed within 15 to 20 years; YTL Corp has reportedly submitted its planning application to local councils for a new development called the Hangout, a pop-up village which offers tipi-style restaurants, temporary retail and entertainment space in Bristol, the UK; MAHB is looking at several options in airport investments under the new operating agreement (OA) that it is currently negotiating with the Government, including the option of self-funding, supported by profit guarantees from the Government; Genting Malaysia’s unit Resorts World Genting (RWG) is temporarily shutting operations, in line with the government’s plan to implement the movement control order (MCO) in Pahang, where it is based, from Jan 22 to Feb 4, 2021. 

 

Malaysia News & Highlights

 

Economics

  • BNM keeps OPR at 1.75% amid continued recovery of global economy but downside risks remain
  • Palm output hit by double whammy of floods and scarce labor

Quarterly Results

  • Zhulian’s 4Q net profit climbs 49%, declares eight sen dividend
  • Axis REIT says 4Q net income up 8.31%, declares DPU of 2.25 sen

Company Development and Outlooks

  • YTL Corp unit submits plan for new Hangout pop-up village in Bristol
  • Widad to develop project worth RM40 billion GDV in Langkawi
  • MAHB allocates RM400m capex for 2021
  • Hibiscus Petroleum unit’s two UK licence agreements fully executed
  • Fintec unit reaches agreement to supply gloves in Europe

Contract Secured and Awards

  • Cymao secures subcontract worth RM134m for mixed development project in Perak

Foreign News

  • Stocks rally to a record as Biden sworn in as president, Netflix soars
  • European markets close higher ahead of Joe Biden’s inauguration
  • Oil rises on U.S. stimulus hopes, tighter market under Biden (Overnight closing)
  • Gold gains more than 1% as focus turns to Biden administration (Overnight closing)

 

Daily Highlights-20 January 2021

Author: jfapex   |  Publish date: Wed, 20 Jan 2021, 9:12 AM


Market Thoughts

 

Wall Street started the week with modest gains ahead of President-elect Joe Biden’s inauguration. The Dow rose more than 100 points on Tuesday, while the S&P 500 gained 0.8%, snapping a two-day losing streak. The Nasdaq Composite rallied 1.5% as big technology stocks rebounded from last week’s sharp losses. Earlier, European stocks fell as investors monitored hopes for economic recovery and the confirmation speech of incoming U.S. Treasury Secretary Janet Yellen.

 

On the local market, the FBM KLCI dropped 7.64 points or 0.47% to 1601.88 points. Following the positive performance in Wall Street, the FBM KLCI could stage a rebound with support at 1570 points.

 

Stocks to watch are: T7 Global has won a contract extension from Petronas Carigali Sdn Bhd to provide underwater inspection services using a mini remotely-operated vehicle; Beshom Holdings Bhd (Beshom) will take over the listing status of Hai-O Enterprise under a corporate exercise where Beshom will focus on multi-level marketing, manufacturing, property while Hai-O will concentrate on wholesale and retail business; Bioalpha has proposed to undertake a rights issue of up to 83.34 million new shares and up to 208.34 million new irredeemable convertible preference shares (ICPS) to raise funds primarily for the group's working capital requirements; Boustead Holdings said it will not be able to comment at this juncture on a media report, on the intention of Lembaga Tabung Angkatan Tentera (LTAT) to privatise the group via selective capital reduction and repayment; Jade Marvel said the group and JSC Land Sdn Bhd have mutually agreed to terminate their joint venture agreement (JVA) to develop a project in mainland Penang; KIP REIT has reported a 5.7% drop in net property income (NPI) for its second quarter ended Dec 31, 2020 to RM13.9 million from RM14.73 million a year ago, as the trust continues to be affected by the movement control order (MCO); Sentral REIT saw its NPI slip 2.4% to RM29.44 million in the fourth quarter ended Dec 31, 2020 from RM30.15 million a year ago, due to lower revenue and higher unrealised rental income.

 

Malaysia News & Highlights

 

Economics

  • Entire nation to come under MCO except Sarawak — Ismail Sabri
  • CIDB extends period of Prihatin initiatives to March 31

Quarterly Results

  • Sentral REIT posts slightly lower NPI in 4Q, to pay 3.65 sen DPU
  • KIP REIT's 2QFY21 NPI down 5.7%, declares 1.59 sen DPU

Company Development and Outlooks

  • Petronas awards offshore project in Mexico to Pacific Khamsin drillship — report
  • i-Stone subsidiaries to resume ops after employees test negative for Covid-19
  • Boustead Holdings not able to comment on report speculating on company’s privatisation by LTAT via SCR
  • Asia Media expects legal advisers to take 3-4 months to probe RM103m losses
  • Two Menang Corp shareholders call for EGM to seek boardroom changes
  • Hai-O to transfer listing status to BesHo
  • Jade Marvel terminates JVA for development of housing project in Penang

Contract Secured and Awards

  • T7 Global gets contract extension from Petronas Carigali

Foreign News

  • Dow rises more than 100 points to start the week, tech stocks lead the gain
  • European markets close lower as traders monitor U.S. earnings; Ladbrokes owner Entain plunges 12%
  • Oil gains on stimulus optimism ahead of Biden inauguration (Overnight closing)
  • Global semiconductor chip sales expected to grow to US$1 trillion in early 2030s

 

Daily Highlights-19 January 2021

Author: jfapex   |  Publish date: Tue, 19 Jan 2021, 10:17 AM


Market Thoughts

 

The U.S. stock market was closed on Monday in honour of Martin Luther King Jr. Day but U.S. stock futures moved modestly higher on Monday evening as Wall Street looked to bounce back from a rough week ahead of President-elect Joe Biden’s inauguration. Earlier, European stocks climbed as the coronavirus pandemic and rollout of vaccinations continued to dominate headlines.

On the local bourse, the FBM KLCI plunged 17.49 points or 1.07% to 1609.52 points. Following the bearish momentum, the FBM KLCI remains pressured and could trend lower towards the support of 1570 points. 

 

Stocks to watch are: Serba Dinamik has won US$135.8 million (RM548.2 million) worth of contracts, including eight operations and maintenance (O&M) jobs won by its 75%-owned subsidiary PT Serba Dinamik Indonesia in Indonesia; Kelington has said it clinched several new contracts totalling RM118 million during the fourth quarter of 2020. The integrated engineering solutions provider said the new contract wins lifted the group's total new orders in financial year 2020 to RM490 million; Ecobuilt has secured a RM166.37 million contract to undertake a mixed commercial development project in Kota Kinabalu, Sabah; Milux has proposed a bonus issue of up to 176.29 million shares on the basis of three bonus shares for every one share held; GHL Systems has expanded its service offerings to include vehicle insurance and road tax renewal services following a tie-up with Loanstreet; Genetec Technology said the manufacturing systems specialist is not aware of any rumour or report concerning the group's business and affairs that might have accounted for the company's share trade activity, which saw the stock's price hit limit up while volume registered a ninefold spike; EcoFirst is buying seven parcels of land in Sungai Buloh for a combined RM70 million. The land parcels are intended to be developed into a mixed development project with an estimated gross development value of more than RM550 million; Parkson Holdings said Parkson Vietnam Co Ltd (PVC) has received a letter from its landlord in Vietnam alleging, among others, that PVC Is required to pay a total amount of VND66.2 billion (RM12 million) to the landlord for unpaid and outstanding rental and late-payment charges; Top Glove has refuted claims by the Canadian Broadcasting Corp over alleged unsuitable working conditions at its factories. The rubber glove manufacturer said the allegations raised in the report and the way in which they were presented were misleading and damaging on the basis that they suggested a breach in existing policies that it currently has in place.

 

Malaysia News & Highlights

 

Economics

  • Malaysia's central bank seen cutting key rate as coronavirus forces fresh lockdowns
  • Govt unveils RM15b PERMAI stimulus package for MCO 2.0

Company Development and Outlooks

  • Parkson to challenge S$3.8m claim by Vietnamese landlord, suspends loss-making store ops in Danang
  • MAHB to roll out facial recognition for passenger authentication, replacing boarding passes
  • 22 Covid-19 cases detected at AME Elite’s migrant worker dormitories
  • Lii Hen estimates capacity loss to increase to 4.6% due to Covid-19
  • DNeX has until end-January to win SilTerra
  • GHL System offers road tax and insurance renewal service
  • EcoFirst to buy Sungai Buloh land for RM550m mixed development
  • SKP Resources says 3% of revenue to be impacted by temporary closure of Johor ops
  • Milux proposes 3 for 1 bonus issue

Contract Secured and Awards

  • Ecobuilt secures RM166.37m construction contract in Sabah
  • Serba Dinamik bags RM548m worth of jobs in Indonesia, India
  • Kelington bags contracts worth RM118m in 4Q20, lifting full-year orders to new record high of RM490m

Change in Boardroom and Management

  • UEM Sunrise appoints Sufian Abdullah as new CEO

Foreign News

  • Stock futures rise slightly after Wall Street’s losing week
  • European stocks close slightly higher; FCA-PSA merger Stellantis jumps over 7%
  • il’s supply-led rally peters out as virus cases surge (Overnight closing)
  • Gold at 1-1/2-month low as resilient U.S. dollar dents bullion appeal (Overnight closing)

 

Daily Highlights-18 January 2021

Author: jfapex   |  Publish date: Mon, 18 Jan 2021, 9:10 AM


Market Thoughts

 

Last Friday, US markets declined as investors digested President-elect Joe Biden's US$1.9 trillion stimulus plan and quarterly earnings announcements by several banking stocks. Earlier, European markets closed in negative territory following concerns over new lockdown measures, political uncertainty and a reemergence of Covid-19 cases in China.

On the local market, the FBM KLCI lost 8.70 points or 0.53% to 1627.01 points. Following the negative performances in the US and Europe, the FBM KLCI could remain pressured and hover sideways below the resistance of 1650 points.

 

Stocks to watch are: Top Glove, which has had half its production capacity halted for over a month in November due to a severe Covid-19 outbreak among its workers, said several more across four factories in Port Dickson, Sungai Puloh, Kulim and Shah Alam have tested positive for Covid-19; Kanger International has diversified into the construction business by signing six deals totalling RM495.9 million. It involves the group undertaking the remaining works at six construction sites in Kuala Lumpur and Pahang, the group said; Daya Materials, a Practice Note 17 (PN17) company, said its subsidiary has secured an RM23.86 million construction sub-contract in Banting, Selangor; Samaiden has secured a RM25.8 million contract from Gimzan Plywood Sdn Bhd to develop a biomass-based power plant in Terengganu; MESB plans to venture into the waste recycling business, as it sees its loss-making trading and retailing of apparel and leather products business to continue to face challenges amid the Covid-19 pandemic; Seacera is selling a 72,770 sq metre land in Taiping, Perak to AT Systematization’s glove unit for RM10.5 million; KNM plans to raise up to RM54.93 million via a private placement to pay off its bank borrowings and to fund some ongoing projects; Genting Malaysia's wholly-owned subsidiary Genting UK plc permanently closed its Genting Casino Southport, in the north-west of England, with 38 staff members facing redundancy; SKP Resources is temporarily closing its Johor Bahru operations from Jan 16 till Jan 29, to facilitate Covid-19 screening of its employees, after five of them tested positive last week. This temporary closure is expected to result in a capacity loss of 3% of its annual output, SKP said; Notion VTec announced that some of its workers have been tested positive for Covid-19 and that the company has detected 87 positive and suspect cases thus far within its premises.

 

 

Malaysia News & Highlights

 

Economics

  • Natural rubber output eases 14.8% month-on-month in November
  • No construction during MCO — Works Ministry

Company Development and Outlooks

  • Batu Kawan, PACs secure 88.03% in CCM, extends takeover offer deadline to Feb 2
  • FELDA acquires another 5.14 million FGV shares from open market
  • Genting Malaysia unit permanently shuts casino in English town
  • TNB implements new terms for electricity connection charge
  • Notion VTec detects 87 Covid-19 positive, suspect cases
  • Seacera sells land in Taiping to AT Systematization’s glove unit
  • MESB eyes waste recycling business in bid to return to profit
  • KNM to raise RM54.93m via placement to repay borrowings, fund ongoing projects
  • SKP temporarily shuts JB ops to screen employees for Covid-19

Contract Secured and Awards

  • Daya Materials unit bags RM24m construction job
  • Kanger takes over six construction projects worth RM496m
  • Samaiden unit bags RM25.8m EPCC job for power plant

Foreign News

  • Wall Street closes lower as banks, energy shares tumble
  • European stocks close lower as recovery concerns offset U.S. stimulus hopes
  • Oil drops more than 2% as demand fears hit sentiment (Overnight closing)
  • Gold falls 1% as dollar accelerates rally (Overnight closing)
  • Gold prices slumped more than 1% on Friday and the metal was heading
  • Asia-Pacific markets mostly lower as shares of Xiaomi in Hong Kong plunge

 

Daily Highlights-15 January 2021

Author: jfapex   |  Publish date: Fri, 15 Jan 2021, 8:43 AM


Market Thoughts

 

US markets ended slightly lower after President Biden unveiled a US$1.9 trillion stimulus plan. Earlier, European stocks climbed after the US' stimulus announcement and positive vaccine news boosted investor sentiment.

 

On the local market, the FBM KLCI shed 0.98 points to 1635.71 points. Following the positive performances in the US and Europe, the FBM KLCI could climb towards the resistance of 1650 points.

 

Stocks to watch are: Most of AirAsia X’s lessors support a restructuring plan, and the Malaysian airline has received interest from potential investors for fundraising after reorganisation, court documents filed this month show; Perak Transit has teamed up with concession owner Energetic Point Sdn Bhd to operate Terminal Sentral Kuantan in Pahang, which serves as a hub for express buses as well as local city buses; Jiankun International has proposed to undertake a private placement of up to 20% of the total number of issued shares in the company to raise an indicative maximum amount of RM23.03 million, which will partly fund the group’s planned land acquisition in Melaka and development costs of the tract;  Pharmaniaga said it is in the midst of negotiation with the Ministry of Health for the purchase of the Covid-19 vaccine from China’s Sinovac Life Sciences Co Ltd for distribution in Malaysia; See Hup is selling nine plots of land in Penang measuring 853,863 sq ft in total for RM46.96 million cash to Tek Seng Holdings Bhd and a vehicle controlled by the latter’s executive chairman and managing director. The group said the proposed disposal is expected to generate a pro forma gain of RM28.05 million; Dayang Enterprise has been awarded a three-year maintenance contract by Mubadala Petroleum’s entity, MDC Oil & Gas (SK320) Ltd. 

 

 

Malaysia News & Highlights

 


Company Development and Outlooks

  • Perak Transit teams up with Energetic Point to run Kuantan bus terminal
  • Jiankun plans private placement to fund property project
  • See Hup sells land in Penang to Tek Seng for RM46.96m cash
  • Boustead Heavy Industries delivers second of four littoral mission ships to RMN
  • Tony Tiah’s unconditional mandatory takeover offer on TA Enterprise deemed not fair but reasonable
  • FELDA buys 22 million FGV shares in open market at below cash offer price
  • AirAsia X shows court creditors' support for restructuring plan
  • Pharmaniaga in talks with MoH over Covid-19 vaccine purchase
  • JCY’s major customer cuts order, to eventually stop purchases
  • Mah Sing's M Vertica achieves 92% take-up rate for first three towers
  • George Kent lodges sukuk programmes with combined limit of RM500m with SC
  • Platinum Victory's ED emerges as substantial shareholder of Red Ideas

Contract Secured and Awards

  • Dayang Enterprise bags three-year maintenance contract from Mubadala

 

Foreign News

  • Stocks close slightly lower as investors await details of Biden stimulus plan
  • European markets close higher as vaccine and U.S. stimulus hopes boost sentiment
  • Oil reverses losses, turns positive on stimulus hopes (Overnight closing)
  • Biden’s $1.9 trillion Covid relief plan calls for stimulus checks, unemployment support and more

 

Daily Highlights-14 January 2021

Author: jfapex   |  Publish date: Thu, 14 Jan 2021, 8:45 AM


Market Thoughts

 

US markets ended mixed with the Dow falling while the S&P and Nasdaq posted gains after Federal Reserve officials said interest rates will not be raised. Earlier, European stocks climbed amid vaccine rollout and lockdown measures in the region.

 

On the local market, the FBM KLCI surged 24.65 points or 1.53% to 1636.69 points. Following the mixed performances in the US and Europe, the FBM KLCI could hover sideways below the resistance of 1650 points.

 

Stocks to watch are: AE Multi has bagged another project to set up the production facility for PNE PCB, a new entrant to the rubber glove industry; Dayang Enterprise has won a contract extension from Sarawak Shell Bhd. The group said its wholly-owned subsidiary DESB Marine Services received the contract extension for the provision of an accommodation workboat, Dayang Opal; The Inland Revenue Board has renewed a contract worth RM35.3 million for HeiTech Padu for supply, delivery and renewal of CA Gen software, Access Gen (TSO) and Composer Report for the mainframe system; Eco World Development said the property developer’s board has decided not to pursue the proposed merger with rival UEM Sunrise following careful evaluation of the merger alongside EcoWorld’s own business plans and the current challenging environment with the re-implementation of the Movement Control Order (MCO); Chin Hin Group Property has proposed to acquire a 1,943 sq metre piece of vacant land in Kuala Lumpur for RM20.91 million to develop office lots; WCT said a judicial committee has upheld the Dubai Court of Appeal's decision that recognises a final award of RM1.2 billion in favour of the company in its dispute with Meydan Group LLC over the Nad Al Sheba Dubai Racecourse project; Greatech Technology is buying 5.9 acres of leasehold land in Penang for RM13.37 million from the Penang Development Corp; Aeon Credit has been granted a renewal for its money-lending licence under the Moneylenders Act 1951 and Moneylenders (Control and Licensing) Regulations 2003 by the Ministry of Housing and Local Government; Genting Malaysia’s Resorts World Genting (RWG) has issued a notice that it anticipates a decline in number of visitors following the implementation of the MCO, Conditional MCO (CMCO) and Recovery MCO (RMCO). It said it will be operating at a lower capacity and that some of its offerings may not be available from Jan 13, 2021; Wintoni has been granted a further extension of time to appoint a replacement sponsor and submit its regularisation plan.

 

 

Malaysia News & Highlights


Company Development and Outlooks

  • Wintoni secures more time to submit regularisation plan
  • AE Multi to build factory for new glove entrant PNE PCB
  • MARC assigns MARC-1IS and A+IS ratings to George Kent’s sukuk programmes
  • Chin Hin buys KL land for RM21m to develop office lots
  • WCT says judicial panel in Dubai upholds court decision in RM1.2b award in its favour
  • Greatech buys land in Batu Kawan to expand capacity
  • Aeon Credit's money-lending licence renewed for two years by Local Govt Ministry
  • AirAsia's digital platform eyes more airline partnerships
  • EcoWorld says not pursuing UEM Sunrise merger
  • Landmarks confirms major fire incident at The Andaman resort in Langkawi
  • PetDag, Maxis partner on big data analytics, converged solutions

Contract Secured and Awards

 

  • Dayang Enterprise wins contract extension from Sarawak Shell
  • HeiTech Padu bags contract renewal from IRB worth RM35m

 

Foreign News

  • S&P 500 and Nasdaq close slightly higher, led by tech shares
  • European markets close higher with vaccine rollout and containment measures in focus
  • Oil declines as demand woes overshadow U.S. inventory drop (Overnight closing)
  • Biden to unveil new Covid stimulus plan, hopes for bipartisan support
 

 

Daily Highlights-13 January 2021

Author: jfapex   |  Publish date: Wed, 13 Jan 2021, 8:59 AM


 Market Thoughts

 

US markets ended flat with slight gains as the benchmark Treasury yield rose, potential stimulus and political turmoil. Meanwhile, European stocks closed slightly lower amid concerns over the coronavirus and US politics.

On the local market, the FBM KLCI lost 5.21 points or 0.32% to 1612.04 points. Following the mixed performances in the US and Europe, the FBM KLCI could hover sideways with support at 1570 points.

 

Stocks to watch are: Pharmaniaga is partnering with China's Sinovac Life Sciences Co Ltd for the supply of 14 million doses of Covid-19 vaccine in Malaysia. Pharmaniaga expects the vaccine to be distributed to the public by the end of March, according to managing director Datuk Zulkarnain Md Eusope. Under the deal, Pharmaniaga will carry out the fill and finish process of the vaccine developed by Sinovac; MTD ACPI Engineering has won a RM33.44 million construction contract from the Public Works Department in Pahang; Mulpha International's wholly-owned unit Mulpha Australia (Holdings) Pty Ltd has accepted a syndicated credit facility of A$342 million (RM1.07 billion) from Oversea-Chinese Banking Corp Ltd and United Overseas Bank Ltd in Australia to finance the refurbishment works at InterContinental Sydney Hotel and to refinance its existing borrowings; AirAsia said its domestic flights in Malaysia remain operational despite the planned implementation of the Movement Control Order across several states and federal territories; Gas Malaysia has set the average natural gas selling price for the distribution segment of its unit Gas Malaysia Energy and Services Sdn Bhd at RM22.14 per million British thermal units (mmBtu) for the first quarter of 2021, which is RM11.51/mmBtu or 34.21% lower than the 2020 average natural gas selling price; Ho Wah Genting is planning to raise up to RM34.58 million via a private placement for purchase healthcare products and for research and development activities for its healthcare-related business as well as to fully repay a loan from Hong Kong-based Prime King Investment Ltd, which had given Ho Wah Genting a short-term advance for working capital purposes; Handal Energy is looking to raise up to RM11.13 million via a private placement to repay its borrowings and fund its working capital. 

 

 

Malaysia News & Highlights


Economics

 

  • Malaysia records 1.2% fall in wholesale, retail trade sales for November 2020

 

Company Development and Outlooks

  • Gas Malaysia lowers average natural gas selling price to RM22.14/MMBtu for 1Q21\
  • Covid-19: AirAsia says domestic flights operational despite MCO
  • Hap Seng Consolidated buys three parcels of land in Labuan for RM205m
  • Sime Darby Plantation strives to counter US allegations, restore its reputation
  • Controlling shareholder TS Wong, MyEG mop up more shares\
  • Pharmaniaga secures 14 million vaccine doses from Sinovac, to be distributed by end-March
  • Spring Art suspends ops at two factories after some employees test positive for Covid-19
  • Ho Wah Genting plans private placement to fund healthcare business, repay borrowings
  • Mulpha's Aussie unit accepts A$342 mil syndicated credit facility\
  • I-Stone says 11 employees tested positive for Covid-19
  • MAHB's December passenger traffic up 24.18% on lifting of interstate travel ban
  • ATTA Global executive director Tan Kim Hee detained by police
  • QL’s takeover offer for Boilermech shares extended to Jan 29
  • FELDA's takeover offer for FGV to close on Feb 2, 2021
  • Handal Energy to raise RM11.13m via private placement to repay borrowings

Contract Secured and Awards

  • MTD ACPI clinches RM33.44m contract in Pahang

 

Foreign News

  • Stocks close flat, Goldman Sachs leads banks higher
  • European markets close mixed as investors focus on coronavirus, U.S. politics
  • Oil hits highest level since February ahead of inventory data (Overnight closing)
  • Stock futures little changed as Wall Street awaits clarity from Washington
  • Asia's corporate earnings expected to rise 26.4% in 2021, Refinitiv data shows
 

 

Daily Highlights-12 January 2021

Author: jfapex   |  Publish date: Tue, 12 Jan 2021, 8:46 AM


Market Thoughts

 

US markets declined overnight as stock pulled back from record highs over concerns of expensive valuations amid the pandemic and political turmoil. Earlier, European stocks tumbled following concerns on rising coronavirus cases.

On the local market, the FBM KLCI plunged 15.94 points or 0.98% to 1617.25 points. Following the negative performances in the US and Europe, the FBM KLCI could remain pressured and extend its downtrend towards the support of 1570 points.

 

Stocks to watch are: Hubline has secured a RM63.22 million contract from the Sarawak Health Department to provide aircraft and helicopters for the flying doctor service, medical evacuation service and other ancillary health services to the latter; HLT Global has proposed to acquire the remaining 45% stake in its 55%-owned rubber glove subsidiary for RM90 million. The group said plans to acquire the stake in HL Rubber Industries Sdn Bhd via the issuance of 90 million new HLT shares at RM1 per share; Advancecon has signed two power purchase agreements (PPAs) to generate a total of 994-kilowatt peak (kWp) under the Net Energy Metering scheme; Three shareholders of Asia Media are seeking to replace four of the company’s existing directors with new ones.

 

Malaysia News & Highlights


Economics

  • Malaysia's IPI contracts for second straight month in November 2020 on mining slump
  • Manufacturing sales grow 2.1% in November 2020
  • MoH, Pfizer sign manufacturing and supply agreement for Covid-19 vaccines

Company Development and Outlooks

  • AirAsia Group 'joined at hip' with Airbus despite cancellations — Tony Fernandes
  • Advancecon signs PPAs with total solar generating capacity of 994 kWp
  • Asia Media shareholders call for removal of directors
  • HLT Global to acquire balance 45% stake in glove making unit for RM90m

Contract Secured and Awards

  • Hubline's unit bags RM63.22 mil contract

Foreign News

  • Stocks close lower to start the week, pull back from all-time highs amid valuation concerns
  • European markets close lower as investors focus on U.S. stimulus and virus; Tui continues slide
  • Oil little changed as renewed lockdowns balance output restrictions (Overnight closing)
  • Stock futures flat after Monday’s session breaks winning streak

 

Daily Highlights-11 January 2021

Author: jfapex   |  Publish date: Mon, 11 Jan 2021, 10:23 AM


Market Thoughts

 

On Friday, US markets rose to record high levels amid potential stimulus aid by President Biden and worse-than-expected unemployment data. Earlier, European stocks advanced on news on vaccines and hopes of economic recovery.

 

On the local market, the FBM KLCI jumped 30.24 points to 1633.19 points following strong gains in glove counters. Following concerns of rising COVID-19 cases in Malaysia, buying interest in glove counters could persist and therefore lift the FBM KLCI to test its immediate resistance of 1650 points.

 

Stocks to watch areVS Industry has set aside RM200 million in capital expenditure (capex) for FY21 to expand and enhance its capacity and capabilities; A subsidiary of Bintai Kinden has been appointed by South Korea’s SLAB Asia Co Ltd, as the exclusive distributor for the Greenie Medi Cold Chain Box designed for the storage and distribution of Covid-19 vaccines in Malaysia; Sentoria is selling two parcels of land measuring 747,069 sq m collectively in Kedah for RM27.9 million, to repay bank borrowings; APFT will be delisted from Bursa Malaysia on Jan 13, after the bourse dismissed the company’s appeal for an extension of time to submit its regularisation plan for approval.

 

Malaysia News & Highlights


Economics

  • Malaysia's December palm oil exports up 20.4% — AmSpec Agri
  • Khazanah sells another 5.18% stake in India's IDFC for US$44m
  • BNM international reserves up at US$107.6b as at Dec 31, 2020

Company Development and Outlooks

  • Axiata denies part-financing Nepali local partner’s purchase of stake in Ncell
  • Genting unlocks value of life science division via potential listing of SPAC
  • EPF’s stake in Top Glove drops below 5% as it lends out more script for regulated short selling
  • Sentoria sells two plots of land in Kedah for RM27.9m to repay borrowings
  • APFT fails to win more time to submit regularisation plan, to be delisted on Jan 13
  • Five SKP Resources employees test positive for Covid-19
  • VS Industry allocates RM200 million capex for FY21
  • Bintai Kinden unit appointed exclusive Covid-19 vaccine distributor for Greenie Medi Cold Chain Box in Malaysia, Southeast Asia
  • Thai AirAsia says latest virus outbreak has dented business

Foreign News

  • Stocks close at record highs, post weekly gain to start 2021
  • European markets log best week in around two months on recovery hopes, vaccine news
  • Gold, silver slump as U.S. political risks fade, yields gain
  • Oil hits highest level since February, posts ninth positive week in 10 (Overnight closing)

 

Daily Highlights-8 January 2021

Author: jfapex   |  Publish date: Fri, 8 Jan 2021, 8:50 AM


Market Thoughts

 

US markets rose overnight with all three major indexes hitting record highs after Congress confirms Joe Biden as president. Similarly, European stocks advanced following political developments in the US.

On the local market, the FBM KLCI rose 10.98 points or 0.69% to 1602.95 points. Following the positive performance in Wall Street, the FBM KLCI could extend its rebound with support at 1590 points.

 

Stocks to watch are: Tomei is mulling over the listing of its design and manufacturing of jewellery arm through a special purpose vehicle on the ACE Market; Bintai Kinden's partner Generex Biotechnology Corp has filed for a trademark for its li-Key vaccine, to be known as "The Complete Vaccine", and patent for its li-Key SARS-CoV-2 vaccine; Circuit board maker PNE PCB is venturing into the rubber gloves manufacturing and distribution space. The group plans to set up five production lines with each making approximately 300 million pieces per year; CN Asia said it will apply for a digital banking licence to offer services for women. The group said it had signed a memorandum of understanding with Intcys Sdn Bhd, under which it plans to invest RM400 million in the establishment of a consortium to provide digital banking for women.; TIME dotCom has acquired a 60% stake in Malaysia’s leading private cloud computing provider AVM Cloud Sdn Bhd for RM58.7 million. TIME said the acquisition marks the group’s efforts in accelerating the growth of cloud computing as the newest pillar of its business, alongside fixed line services, global network connectivity and data centres; KESM’s executive chairman and CEO Sam Lim announced a new investment of a factory space of more than 100,000 sq ft in Melaka to support future growth in burning and test of automotive semiconductors, in anticipation of the business recovery; The sales tax exemption introduced by the government in the middle of last year propelled strong sales for UMW Holdings in the second half of the year, resulting in 59,320 units of Toyota vehicles and 220,154 units of Perodua automobiles being sold last year, exceeding its 2020 targets of 53,000 vehicles under the Toyota marque and 210,000 units of Perodua automobiles; Bursa Malaysia has issued an unusual market activity (UMA) query to BSL due to the sharp rise in the group’s share price and trading volume. 

 

Malaysia News & Highlights


Economics

  • Agri-commodity sector recorded 10.6% trade value growth in January to November, says Khairuddin

Company Development and Outlooks

  • Petronas takes over Sarawak offshore gas hub from Shell
  • CN Asia to offer digital banking services for women
  • Bintai Kinden's partner Generex files trademark and patent for Covid-19 vaccine
  • Tomei looking at listing jewellery design and manufacturing arm on ACE Market but unsure of timeline
  • Oriental Interest plans bonus issue and rights issue with warrants
  • TIME dotCom buys 60% stake in cloud computing firm AVM
  • PNE PCB ventures into rubber glove production, distribution

Foreign News

  • Wall St tops new highs on Democrat-driven stimulus hopes
  • European markets close higher after U.S. Congress confirms Biden election win
  • Oil rises as supply constraints retain focus amid U.S. Capitol drama (Overnight closing)
  • Gold falls on firmer dollar and U.S. yields (Overnight closing)

 

Daily Highlights-7 January 2021

Author: jfapex   |  Publish date: Thu, 7 Jan 2021, 8:50 AM


Market Thoughts

 

US markets ended mixed with the Dow surging to a record high with investors optimistic about the prospects of additional fiscal stimulus as results from the runoff elections in Georgia rolled in. Meanwhile, the S&P also climbed but the Nasdaq ended lower as markets were largely unaffected by the chaos in Washington Wednesday caused by pro-Trump rioters at the U.S. Capitol. Earlier, European stocks advanced amid US political developments and concerns over the coronavirus which saw England and Germany extending lockdowns.

 

On the local market, the FBM KLCI plunged 16.38 points or 1.02% to 1591.97 points. Following the positive performance in Wall Street, the FBM KLCI could stage a rebound after coming off its support at 1590 points.

 

Among stocks to watch are Top Glove Corp Bhd after BlackRock, which holds a 1.61% stake voted against the election of six independent directors at the AGM yesterdayHartalega Holdings Bhd and its two subsidiaries are suing its former executive director Danaraj Nadarajah, Techfast Holdings Bhd plans to diversify into petroleum trading and oil bunkering by acquiring a 35% stake in a company that supplies marine fuels for RM26.25m, LBS Bina Group Bhd plans to launch projects worth an accumulated gross development value of RM2.65 billion this year, Censof Holdings Bhd has bagged a RM10.12 million contract from the Ministry of Finance for its budget management information system, Cymao Holdings Bhd, which was issued an unusual market activity (UMA) query by Bursa Malaysia yesterday, said it is unaware of any corporate development, apart from its proposed diversification into construction and project management, Sanichi Technology Bhd has emerged as a substantial shareholder of BCM Alliance Bhd, after acquiring 50.77 million shares or a 10.54% stake in the company via off-market trades, and Yong Tai Bhd, which last month proposed the development of  a China-based company’s Covid-19 vaccine in Malaysia, today signed up Tiong Nam Logistics Holdings Bhd to provide distribution services for the vaccine. 

 

Malaysia News & Highlights


Economics

  • At least 40% of ECRL civil works worth RM10b to be awarded to local firms

Company Development and Outlooks

  • Sanichi Technology emerges as a substantial shareholder of BCM Alliance
  • Awantec partners with Huawei to drive digitalisation of Malaysia’s public sector
  • Top Glove factories resume operations with reinforced health and safety SOPs
  • Supercomnet reclassified under healthcare sector
  • LBS plans to launch RM2.65 bil GDV of projects in 2021
  • Techfast to diversify into petroleum trading and oil bunkering

Contract Secured and Awards

  • Censof bags RM10m contract from MoF
  • Yong Tai inks deal with Tiong Nam for Covid-19 vaccine distribution

Foreign News

  • Dow, S&P 500 close higher, but pro-Trump protests weigh on gains
  • European markets close higher as coronavirus and Georgia runoff remain in focus
  • Oil jumps to highest since Feb. after larger-than-expected inventory draw, U.S. election in focus (Overnight closing)
  • Gold slides more than 2% as dollar rebounds, Treasury yields jump (Overnight closing)

 

Daily Highlights-6 January 2021

Author: jfapex   |  Publish date: Wed, 6 Jan 2021, 8:56 AM


Market Thoughts

 

US markets rose overnight and ended slightly higher as investors waited for results from Georgia's runoff elections. Earlier, European stocks ended lower amid concerns over the spreading of coronavirus.

 

On the local market, the FBM KLCI gained 5.78 points to 1608.35 points. Following the mixed performances in the US and Europe, the FBM KLCI could remain sideways above the support of 1590 points.

 

Stocks to watch are: AT Systematization is suing the shareholders of Pearl Glove (Malaysia) Sdn Bhd to recover RM4.4 million, after abandoning its planned purchase of the glove maker. AT Systematization said AT Glove had signed an agreement dated June 26, 2020, with the shareholders to purchase their shares in Pearl Glove for RM3.44 million. A deposit of RM687,800 was initially paid to the shareholders; Ecobuilt has secured a RM72.32 million contract to undertake the construction of a retail and commercial suites project in Kota Kinabalu, Sabah; Eonmetall plans to dispose of a parcel of land in mainland Penang with a building erected on it for RM58.8 million. The group said it expects to incur a gain of RM4.34 million; KPower inked an agreement to supply polymerase chain reaction (PCR) tests for Covid-19 in Indonesia for a minimum contract price of US$6 million (RM24.05 million). The group also said it would be acquiring a 70% stake in Granulab (M) Sdn Bhd for RM1 million from Sirim Bhd’s wholly-owned subsidiary Sirim Tech Venture Sdn Bhd. Granulab is a medical device manufacturing company for gradual synthetic bones graft “Granumas”; Cymao, whose shares jumped 28% yesterday, has received an unusual market activity (UMA) query from Bursa Malaysia; Euro Holdings, whose share price surged to an all-time high of RM3.84 at the midday break yesterday, triggering an unusual market activity (UMA) query from Bursa Malaysia; Minho said its paper manufacturing subsidiary temporarily halted operations for four days, after 21 workers at its premises tested positive for Covid-19 on Dec 31, 2020; ATA IMS has temporarily shut down operations of all its factories in Johor, due to a high daily number of Covid-19 infections; Kimlun plans to buy an 11.12-acre freehold commercial land in Bandar Seri Alam, Johor Baru for RM40.5 million.

 

Malaysia News & Highlights


Economics

  • MPOC: Palm oil production to increase to 19.6 million tonnes in 2021

Company Development and Outlooks

  • Kimlun to buy JB land for RM40.5m for commercial development
  • ATA IMS suspends all factory ops for a week on account of high Covid-19 cases in Johor Bahru
  • MCT to launch seven projects this year
  • Minho's paper manufacturing unit finds 21 workers infected with Covid-19
  • Top Glove's chairman bought more shares when share price sagged on Jan 4
  • Eonmetall disposes of land in Seberang Perai for RM58.8m
  • AT Systematization sues glove firm’s shareholders to recover money after cancelling acquisition

Contract Secured and Awards

  • Ecobuilt secures RM72m construction contract in Sabah
  • KPower signs RM24m deal to supply PCR Covid-19 tests in Indonesia

Foreign News

  • Dow closes more than 150 points higher as oil surges, Georgia runoffs loom
  • European markets close lower with coronavirus spread, Georgia runoff in focus
  • OPEC+ reportedly nearing compromise on holding oil output steady(Overnight closing)
  • Global semiconductor sales 7% higher year-on-year in November — SIA

 

Daily Highlights-5 January 2021

Author: jfapex   |  Publish date: Tue, 5 Jan 2021, 9:00 AM


Market Thoughts

 

US markets tumbled overnight following concerns ahead of Tuesday’s Georgia runoff elections, which will determine whether Republicans can hold on to control in the Senate. Investors 

fear that increased tax rates and more progressive policies could become reality if Democrats gain control of the Senate.  Earlier, European stocks advanced on the first trading session of the new year, despite lingering concerns over the rising number of coronavirus cases around the world.

 

On the local market, the FBM KLCI plunged 24.64 points to 1602.57 points following selldown of glove counters. Following the decline in Wall Street, the FBM KLCI could remain pressured with support at 1590 points

 

Stocks to watch are: Destini has bagged an extension for its maintenance, repair and overhaul (MRO) contract with the Royal Malaysian Air Force; T7 Global has secured a 10-year contract from Petronas Carigali Sdn Bhd for the leasing, operation and maintenance of a mobile offshore production unit (MOPU) for Phase 2 of the Bayan gas redevelopment project; Aeon Credit reached an out-of-court settlement with the Inland Revenue Board (IRB) under which the unpaid taxes sought from the company have been significantly reduced. The group said the amount sought from the financial services company, inclusive of penalties, has been brought down to RM10.31 million, from RM96.82 million previously; Ageson’s 75%-owned subsidiary Ageson Holdings Sdn Bhd (AHSB) has inked a development rights agreement with Menteri Besar Inc (Perak) to develop a mixed development with an estimated gross development value of RM1.24 billion on some 475 acres of land in  Batang Padang district in Perak. Separately, it announced that it will pay part of an outstanding sum it owed to RHB Bank Bhd. Ageson did not disclose the sum involved. RHB had filed a suit against the group over a RM33 million term loan; Focus Dynamics has proposed to split each of its shares into three shares in a move to improve the trading liquidity of the shares; Top Glove announced that the company will be declaring a special dividend of 20% for the remaining FY21. The special dividend will be on top of its existing dividend policy of a 50% payout ratio on profit after tax and minority interests (PATAMI); MRCB and George Kent joint venture (JV) and Light Rail Transit 3 (LRT 3) contractor MRCB-George Kent Sdn Bhd (MRCBGK) said Prasarana Malaysia Bhd’s payment on Oct 2, 2020 were only for construction works done up to end-June 2020. MRCBGK said Prasarana’s delayed payments of more than RM700 million were from July 2020 to October 2020, which have been certified for payment by Prasarana’s independent consultant KL Prima Consult Sdn Bhd; New Hoong Fatt said 79 of its employees tested positive for Covid-19 at its plastic parts production factory in Meru, Klang; Lii Hen said the Enhanced Movement Control Order (EMCO) at its foreign workers dormitory in Muar, Johor has been extended to Jan 15

 

Malaysia News & Highlights


Economics

  • Malaysia's PMI up at 49.1 in December, highest since August

Company Development and Outlooks

  • APFT fails to meet deadline to release 2QFY21 financial report
  • Top Glove announces special dividend of 20%
  • Aeon Credit settles tax dispute with IRB out of court
  • 9 workers test positive for Covid-19 at New Hoong Fatt's plastic parts factory
  • MRCB-George Kent says Prasarana’s October payment only for works done up to June
  • Focus Dynamics proposes one-to-three share split

Contract Secured and Awards

  • Damansara Holdings bags Petronas contract extension for facilities management worth RM67m
  • T7 Global's unit gets charter contract for one mobile offshore production unit with Petronas Carigali
  • Destini’s MRO contract with RMAF extended for a year
  • Ageson’s unit to undertake RM1.24b mixed development with MBI Perak 

Foreign News

  • Stock futures flat after S&P 500 suffers first negative start to a year since 2016
  • European markets close higher in first trading session of the new year
  • Oil slides as oil-producing group delays output decision (Overnight Closing)
  • Gold jumps more than 2% as dollar sags

 

Daily Highlights-4 January 2021

Author: jfapex   |  Publish date: Mon, 4 Jan 2021, 9:11 AM


Market Thoughts

 

US markets surged on Thursday with the Dow hitting a record high following better-than-expected unemployment data. Earlier, European stocks declined following concerns on the coronavirus and Brexit uncertainty.

 

On the local market, the FBM KLCI plunged 17.20 points to 1627.21 points on the last trading day of the year. Following the mixed performances in the US and Europe, the FBM KLCI could trend sideways below the resistance of 1650 points. 

 

Stocks to watch are: Mudajaya said its 76%-owned indirect subsidiary Bera Hydropower Sdn Bhd has been selected as one of the successful bidders in a competitive Feed-in Tariff e-bidding small hydro tender exercise by the government; Hong Seng said it is acquiring a 60% stake in Neogenix Laboratoire Sdn Bhd for RM6.5 million. Neogenix is a medical diagnostic and research laboratory and provides more than 76 tests ranging from infectious diseases, oncology, precision medicine, generic tests and et cetera. Separately, the group also said it is acquiring a 32% stake in eMedAsia Sdn Bhd for RM3 million. eMedAsia currently runs a medical digital platform, which provides online clinic appointments and an e-commerce marketplace for clinics to purchase pharmaceutical, medical and healthcare supplies; The Roundtable on Sustainable Palm Oil (RSPO) has launched an immediate investigation into new violations by Sime Darby Plantation as alleged by the US Customs and Border Protection (CBP) following the issuance of a withhold release order against the company's palm oil at all US ports of entry; Top Builders Capital has obtained court orders to restrain its creditors from taking action against the group and its assets, as well as to summon them to attend meetings for the purpose of discussing restructuring arrangements; Construction counters following the news of Malaysia and Singapore have decided to terminate the Kuala Lumpur-Singapore High Speed Rail (HSR) project as both countries could not reach an agreement on several changes that the Malaysian government proposed.

 

Malaysia News & Highlights


Economics

  • China remained Malaysia's largest trading partner for 11th year — DOSM
  • BNM rolls out policy document on licensing for digital banks, sets June 30 deadline for application submission

Quarterly Results

  • Cypark sees earnings recovery in 4Q as movement restrictions ease

Company Development and Outlooks

  • RSPO probes US ban on Sime Darby Plantation palm oil, claims no red flags from earlier audit
  • Public Mutual declares distributions of RM79m for 11 funds
  • Top Builders gets court orders to restrain creditors from taking action pending discussion

Contract Secured and Awards

  • Mudajaya unit wins small hydro project bid in Pahang

Foreign News

  • Wall St closes out wild pandemic year with Dow, S&P at records
  • European shares post 3.8% loss for 2020 as coronavirus dominates; FTSE has worst year since 2008
  • Oil tumbles 20% in 2020 amid unprecedented demand loss from Covid (Overnight Closing)
  • China's factory recovery moderates as higher costs slow business
  • China gives its first Covid-19 vaccine approval to Sinopharm

 

Daily Highlights - 31 December 2020

Author: jfapex   |  Publish date: Thu, 31 Dec 2020, 8:58 AM


Market Thoughts

 

US stocks inched up higher on Wednesday amid renewed vaccine optimism and hopes on additional fiscal stimulus. Meanwhile, European markets declined after UK lawmakers approved a Brexit trade deal and the UK’s drug regulator approved the Oxford-AstraZeneca coronavirus vaccine for use.

 

On the local front, the FBM KLCI closed up 9.42 points or 0.58% to settle at 1644.41 points yesterday on the back of window dressing. Market breadth was positive with 656 gainers against 508 losers. The local bourse is expected to trade sideways, within the support level of 1615 points and resistance level of 1695 points, on overnight tepid performances posted by the overseas markets.

 

Stocks to watch are: The United States has banned imports of palm oil from Malaysian producer Sime Darby Plantation over allegations of forced labour in the production process, according to the US Customs and Border Protection; Uzma is planning to raise up to RM300 million via a Perpetual Sukuk Musharakah Programme, which it is setting up to raise proceeds for working capital, capital expenditure and to refinance its existing borrowings; STYL Associates PLT has resigned as the auditor of G Capital. The group said it received a notice in writing for the auditor's voluntary resignation, with the latter citing the unavailability of resources to manage the engagement; Stella Holdings has been awarded a RM20.97 million contract involving water and electricity infrastructure work in Negeri Sembilan; Willowglen MSC has secured a contract worth RM20.2 million from Singapore’s Public Utilities Board to replace and enhance supervisory control and data acquisition system and ancillary works at the Tuas South desalination plant; K-One has received the approval from Medical Device Authority of Malaysia (MDA) to manufacture and supply five additional variants of nasal swabs for use in Covid-19 testing; AME Elite Consortium is aiming to generate more than RM1.5 billion in gross development value (GDV) through its 169.8-acre land acquisitions in the Southern Industrial and Logistics Clusters (SiLC) in Iskandar Puteri, Johor Bahru. The total purchase consideration of the proposed land acquisitions amount to RM434.3 million.

 

Malaysia News & Highlights


Economics

  • Malaysia's November Producer Price Index down 3%

Company Development and Outlooks

  • Uzma sets up RM300m perpetual sukuk programme
  • K-One Technology's unit gets approval for nasal swab manufacturing, supply
  • Another external auditor resigns, this time it's G Capital's
  • AAX wants to set aside BOC Aviation foreign judgement demanding the carrier pay US$23.3m
  • AME Elite aims to generate more than RM1.5b GDV in newly-acquired Johor land
  • Genting HK, Crédit Agricole terminate RM1.74b cruise ship sale, leaseback deal
  • US blocks imports of palm oil from Sime Darby Plantation over allegations of forced labour
  • EcoWorld, UEM Sunrise to start discussions on proposed merger

Contract Secured and Awards

  • Willowglen bags RM20.2m contract from Singapore’s Public Utilities Board
  • Sime Darby Property awards water, electricity infrastructure contract to Stella subsidiary

 

Foreign News

  • Dow rises for the fourth time in five days, ekes out record closing high
  • European markets close slightly lower after Brexit trade deal approved
  • Oil advances on U.S. inventory draw, but demand fears weigh (Overnight Closing)
  • U.S. Treasury yields move higher after delay to Senate vote on $2,000 stimulus checks
  • China revises 2019 GDP growth lower to 6%

 

Daily Highlights - 29 December 2020

Author: jfapex   |  Publish date: Tue, 29 Dec 2020, 9:03 AM


Market Thoughts

 

U.S. stocks jumped to record highs yesterday following the US President Donald Trump signed a $900 billion economic relief bill. Meanwhile, the House will vote on increasing the second round of federal direct payments to $2 trillion as Democrats welcomed Trump’s calls to put more money into American’s pockets. Likewise, European markets rallied as inspired by signing of US economic relief bill into law. 

 

On the local front, the FBM KLCI gained 2.73 points or 0.17% to settle at 1643.90 points yesterday. Market breadth was positive with 701 gainers compared to 549 losers. We expect the local bourse to trade positively today as underpinned by the overnight gains in the overseas markets with our resistance level of 1695 points.

 

Stocks to watch are: Kerjaya Prospek announced it has won a RM61.9 million contract from Aspen (Group) Holdings Ltd, to develop a proposed residential project in Penang; Chin Hin plans to acquire a 51.5% stake in Chin Hin Group Property for RM88.86 million from its chairman Datuk Seri Chiau Beng Teik and his family. The group also announced a bonus issue of 278.19 million shares, on the basis of one bonus share for every two ordinary shares held in Chin Hin on an entitlement date to be fixed; CN Asia, which was slapped with an unusual market activity (UMA) query by the stock exchange regulator earlier today, said it is unaware of any reason that could account for the recent sharp rises in its share price and trading volume; Kotra Industries' wholly owned unit Kotra Pharma (M) Sdn Bhd has announced voluntary product recall for Axcel Mometasone 0.05% w/w Nasal Spray as it "may not have met the Pharmacopeia microbial specifications"; A foreign worker dormitory of Lii Hen in Muar, Johor has been put under Enhanced Movement Control Order (EMCO) after seven of its employees tested positive for Covid-19; New Hoong Fatt reported that 94 of its employees tested positive for Covid-19 after a planned screening involving 314 employees at its factory in Meru, Klang; Hong Seng Consolidated is acquiring a plot of land in Kedah Rubber City (KRC) for RM45.74 million, to build and operate a plant that manufactures nitrile butadiene latex, a core material used in the making of nitrile gloves; ICT software service provider Prestariang Bhd will be traded and quoted on the main board of Bursa Malaysia under the new stock name "AWANTEC", effective Dec 29, following its name change to AwanBiru Technology (Awantec).

 

Malaysia News & Highlights


Economics

  • Malaysia imposes provisional anti-dumping duties on steel imports from Indonesia, Vietnam
  • November exports 4.3% higher at RM84.43b — MITI
  • Malaysian business sentiment remains muted for 1Q21, says Dun & Bradstreet

Company Development and Outlooks

  • Hong Seng to buy land in Kedah Rubber City for RM45.74m to set up nitrile butadiene latex plant
  • New Hoong Fatt shuts down metal parts production temporarily after 94 staff tested positive for Covid-19
  • Lii Hen's foreign worker dormitory under EMCO until Jan 5 after seven staff infected
  • Kotra recalls four batches of Axcel Mometasone Nasal Spray
  • Chin Hin to buy 51.5% stake in Chin Hin Group Property from Chiau family for RM88.86m; announces bonus issue

Contract Secured and Awards

  • Kerjaya Prospek secures RM61.9 million residential project from Aspen

 

Foreign News

  • Dow jumps 200 points to record as traders cheer stimulus bill signing
  • European markets close sharply higher after Trump signs Covid relief bill into law
  • Oil erases early gains, settles lower as demand fears weigh (Overnight Closing)
  • China’s economy is still months away from a full recovery, business survey finds
  • Novavax starts late-stage trial of Covid-19 vaccine in United States

 

Daily Highlights - 28 December 2020

Author: jfapex   |  Publish date: Mon, 28 Dec 2020, 9:05 AM


Market Thoughts

 

U.S. stocks posted slight gains in thin trading on Thursday to wrap up the holiday-shortened week.  European stocks closed mixed after a light trading session Thursday, as traders grew optimistic a Brexit trade deal would be reached.

 

On the local front, the FBM KLCI lost 6.33 points or 0.38% to settle at 1641.17 points. Market breadth was negative with 587 losers compared to 514 gainers. We expect the local bourse to be muted this week, hovering between the support level of 1615 points and the resistance level of 1695 points, as investors away for year-end holidays.

 

Stocks to watch are: Yinson's wholly-owned subsidiary, Yinson Renewables (S) Pte Ltd, has completed its acquisition of an additional 57.5% equity interest in Rising Sun Energy Pvt Ltd (RSE). The group said RSE is an India-incorporated company with two operational solar plants in the Bhadla Solar Park, Rajasthan; MTD ACPI Engineering said its unit MTD Construction Sdn Bhd has won a tender for the proposed pavement rehabilitation and associated works at East Coast Expressway 2. The RM3.85 million contract commences on Dec 29 and is due for completion on March 28, 2021; KTG is planning to venture into the glove manufacturing business. KTG said its wholly-owned unit APPI Sdn Bhd today entered into a memorandum of understanding with Howellcare Industries Sdn Bhd, a company involved in latex and nitrile examination glove manufacturing. KTG said the contract price is RM54.8 million, and it will be satisfied in cash; Komarkcorp has proposed to undertake a share split involving the subdivision of every 10 existing shares in the company into 18 shares; Johan is disposing of its loss-making credit card business in Singapore for S$103.59 million (RM313.98 million); Wegmans is acquiring a 90% stake in screws, nuts and spare parts manufacturer Wison Screw Industries Sdn Bhd (WSI) forRM16.2 million, as part of its expansion strategy. The purchase consideration will besettled via issue of new shares; Lambo has proposed to undertake a private placement of up to 775.06 million shares to raise as much as RM24.8 million, which will mainly be used for its wine business; Plywood products maker Cymao has proposed to diversify into the construction and project management business.

 

Malaysia News & Highlights


Economics

  • Economic recovery likely in early months of 2021, says DOSM

Company Development and Outlooks

  • Plywood products maker Cymao plans diversification into construction, project management
  • Lambo plans private placement of 775 million shares to raise up to RM24m for wine business
  • Johan to dispose of loss-making Diners Club business in Singapore, may venture into glove manufacturing
  • WCT sees downward revision in LRT3 contract value to RM819m
  • Komarkcorp proposes share split after rally glove making
  • MPCorp's unit gets notice of application to revise RM115m sum owed to Amanahraya
  • Yinson's unit acquires additional 57.5% stake in India-based company

Contract Secured and Awards

  • MTD ACPI bags East Coast Expressway 2 roadworks contract

Foreign News

  • Oil moves higher on Brexit deal, U.S. inventory draw (Overnight Closing)
  • European stocks close mixed amid hopes for Brexit trade deal; UK banks jump
  • S&P 500 ekes out a small gain for the quiet holiday session
  • Treasury yields fall after U.K. reaches post-Brexit trade deal

 

Daily Highlights - 23 December 2020

Author: jfapex   |  Publish date: Wed, 23 Dec 2020, 11:11 AM


Market Thoughts

 

US stocks fell following the Congress approved a long-delayed fiscal stimulus package as investors inclined to book in profit after registering solid gains in 2020. Meanwhile, European stocks ended higher, rebounding from the yesterday’s sell-off amid lingering worries on new coronavirus strain in the UK. 

           

On the local front, the FBM KLCI lost 15.97 points or 0.97% to settle at 1631.92 points. Market breadth was negative with 1045 losers compared to 252 gainers. We expect the local bourse to trade sideways in the absence of positive catalyst to spark buying interest.

 

Stocks to watch are: Jiankun International has inked a memorandum of understanding (MoU) with Chuanplus Industries Sdn Bhd to invest RM50 million to produce nitrile rubber. Chuanplus is a nitrile rubber producer based in Nilai, Negeri Sembilan; Ranhill Utilities said the National Water Services Commission has renewed the group's licence to treat and supply treated water to consumers in Johor for the next three years; Tan Chong Motor has teamed up with China’s GAC Motor International Ltd to look into selling and assembling the latter’s vehicles in Malaysia and Vietnam; Pecca said 246 employees of its subsidiary tested positive for Covid-19 in a recent screening, and the affected firm has decided to temporarily cease operations; Another 563 employees of Kossan Rubber tested positive for Covid-19 as of yesterday, causing the affected plant in Klang to remain suspended until Dec 30. This raises to 990 the number of Kossan employees who have been infected with the virus; Dynasty Portfolio Sdn Bhd — an indirect subsidiary of UOA Development — has subscribed for new units under UOA REIT private placement for RM52.65 million or RM1.10 per unit; Mitrajaya is acquiring a 60% stake in a plantation works and sand extraction company from its own group managing director and major shareholder Tan Eng Piow, for RM15.9 million; PKF Malaysia has voluntarily resigned as the external auditor of Fintec Global, citing "resources constraint".

 

Malaysia News & Highlights

 

Economics

  • BNM international reserves up at US$105.7b as at Dec 15
  • After Singapore awards digital bank licences, all eyes now on Malaysia
  • CPO export tax at 8% from Jan 1 to 31, says Customs Department

Company Development and Outlooks

  • Federal Court dismisses application for leave to appeal filed by Maybank on IRB assessments
  • Pecca confirms 246 employees tested positive for Covid-19, seven-day production closure limited to less than 5% of FY21 revenue
  • OIB Group inks deal with MTT Shipping at Arym Pulau Indah
  • Jiankun to invest RM50m in nitrile rubber production venture
  • Kossan says another 563 positive cases detected among its workers
  • Mitrajaya to buy MD’s 60% stake in plantation works, sand extraction company for RM15.9m
  • Tan Chong signs MoU on selling vehicles made by China’s GAC in Malaysia, Vietnam
  • Fintec Global's external auditor resigns amid 'resources constraint'
  • Felda to take FGV private following unconditional takeover offer

Contract Secured and Awards

  • Ranhill's licence to supply water in Johor renewed for another three years

Change in Boardroom and Management

  • Former AG Apandi Ali is now Jiankun chairman
Foreign News
  • S&P 500 ends lower as new COVID storm clouds overshadow stimulus passage
  • European stocks close higher despite concerns over new coronavirus strain
  • Oil slides 2% as growing Covid case count weighs on demand projections (Overnight Closing)
  • China's bid to establish global benchmark for palm oil futures seen an uphill battle
  • US third-quarter GDP growth revised slightly up; momentum waning

 

Daily Highlights - 14 December 2020

Author: jfapex   |  Publish date: Mon, 14 Dec 2020, 8:34 AM


Market Thoughts

 

US stocks ended lower on Friday as the outlook for additional fiscal stimulus remained uncertain. Meanwhile, European stocks closed lower amid stalling US fiscal stimulus and the deadlock over Brexit talks.

 

On the local front, the FBM KLCI soared 30.19 points or 1.82% to 1684.58 points on Friday following gains in banking stocks led by Public Bank. However, market breadth was negative with 626 gainers as compared to 690 losers. We expect profit taking activities to weigh on the local bourse today with our support level of 1615 points and resistance level of 1695 points.

 

Stocks to watch are: IHH Healthcare said it is ready to administer the coronavirus vaccine, once they are rolled out in the 10 countries it operates in. Its managing director and CEO Dr Kelvin Loh Chi-Keon said the company has a trained staff count of 55,000 across 80 hospitals it runs from Turkey to Singapore, as well as cold-storage facilities required to store the shots; JHM is acquiring a 5.59ha vacant leasehold land in Penang for RM27.06 million, cash, to expand its business into the manufacturing of telecommunication equipment; Ipmuda, which was slapped with an unusual market activity query by the bourse earlier, highlighted recent changes in its board of directors, substantial shareholders’ shareholdings, as well as contract wins in its response to stock exchange.

 

Malaysia News & Highlights

 

Economics

  • DOSM: Malaysia unemployment rate up at 4.7% in October
  • Malaysia's three-month IPI growth streak snapped in October on mining slump — DOSM

Company Developments and Outlooks

  • Bursa Derivatives to relaunch FM70 futures contract from Dec 14
  • Genting-backed biotech firm completes first assessment of Covid-19 treatment trial
  • Overwhelming response to MGO, Ekovest now holds 91.24% stake in PLS Plantation
  • Ipmuda highlights substantial shareholding changes in UMA reply
  • IHH girds for Singapore-to-Turkey vaccine push
  • JHM buys land in Penang for RM27.06m to expand into telecommunication equipment manufacturing

Change in Boardroom and Management

  • Guocoland MD Edmund Kong resigns to pursue other opportunities

Foreign News

  • S&P 500 falls for a third straight day to close out losing week as stimulus uncertainty remains
  • European markets close lower as Brexit and U.S. stimulus doubts weigh
  • Oil pulls back amid Covid restrictions, but still posts sixth straight week of gains (Overnight Closing)
  • China’s iron ore prices spike 10% to a record high on supply concerns

 

Daily Highlights - 11 December 2020

Author: jfapex   |  Publish date: Fri, 11 Dec 2020, 9:07 AM


Market Thoughts

 

US stocks declined overnight as negotiations over a coronavirus relief deal dragged on. Lawmakers seek to pass a bill before lifelines expire at the end of 2020. Without fresh stimulus, millions of Americans could lose unemployment benefits in the new year. Meanwhile, weekly jobless claims jumped last week to 853,000, the highest total since Sept. 19, as new lockdown restrictions weighed on businesses amid rising coronavirus cases. Earlier, European stocks closed lower Thursday as investors tracked the parlous state of Brexit trade talks, as well as fresh stimulus measures from the European Central Bank (ECB).

 

On the local front, the FBM KLCI gained 7.86 points to 1654.39 points. The local bourse is expected to extend its uptrend towards resistance level of 1695 points.

 

Stocks to watch are:

Bermaz Auto Bhd’s (BAuto) net profit for the second quarter ended Oct 31, 2020 rose 22% year-on-year to RM24.79 million versus RM20.39 million, boosted by improvement in domestic sales, Poh Kong Holdings Bhd had a strong kick-off to its new financial year with an 81.1% jump in net profit to RM14.64 million for the first quarter ended Oct 31, 2020, from RM8.08 million a year ago, UMW Holdings Bhd’s automotive segment is on track to meet its full-year sales target, supported by strong sales in November 2020 by both subsidiary UMW Toyota and associate Perodua, Berjaya Land Bhd (BLand), controlled by tycoon Tan Sri Vincent Tan, has continued to accumulate shares in convenience store chain operator 7-Eleven Malaysia Holdings Bhd over the past three months, KUB Malaysia Bhd (KUB) said the fulfilment of the conditions under the Sale and Purchase Agreement signed between its indirect wholly-owned subsidiary KUB Agro Holdings Sdn Bhd, and Beradin Plantation Sdn Bhd, has been extended by 30 days until Jan 8, 2021, BIMB Holdings Bhd (BHB) has obtained approval from the Minister of Finance and Bank Negara Malaysia for its proposed internal reorganisation and distribution and capital repayment, which will pave the way for the transfer of its listing to its subsidiary, Bank Islam Malaysia BhdCymao Holdings Bhd responded to Bursa Malaysia's unusual market activity query saying the group is in the final stage of discussion with several parties on a potential new viable business venture to reduce the plywood maker's reliance on its core business and AirAsia Group Bhd group CEO Tan Sri Tony Fernandes was quoted as saying that the company is currently in discussion with India-based conglomerate Tata Group on the future of their joint venture, AirAsia (India) Ltd.

 

 

Malaysia News & Highlights

 

Company Developments and Outlooks

 

  • Wholesale, retail trade sales down 0.8% in October — DOSM
  • Petronas sells shares in MISC and KLCCP Stapled Group
  • Berjaya Land spends RM11m to mop up 7-Eleven shares
  • KUB indirect unit gets extension for proposed disposal of oil palm estates
  • UMW's automotive business on track to meet full-year target
  • Top Glove chairman's turn to buy company shares
  • BIMB gets approval from MoF, BNM to transfer listing to Bank Islam
  • AirAsia Group in discussion with Tata on Indian JV's future, says Fernandes
  • Plywood maker Cymao in final stage of discussion on new business

 

Company Quarterly Results

 

  • Poh Kong’s quarterly profit jumps 81% on improved business after easing of MCO
  • BAuto’s 2Q net profit climbs 22% y-o-y as Govt measures boost domestic sales

Foreign News

  • Stocks close little changed as stimulus negotiations drag on, unemployment data disappoints
  • European markets close lower as Brexit uncertainty weighs; ECB boosts stimulus
  • Oil jumps to 9-month high, Brent settles above $50 for first time since March (Overnight Closing)
  • Treasury yields fall as investors monitor stimulus talks

 


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