US markets ended flat overnight as investors rotated from technology to cyclical stocks after the recent breakthrough in coronavirus vaccine. Earlier, European stocks advanced following Pfizer and BioNTech's progress in vaccine development.
On the local market, the FBM KLCI rallied 50.75 points to 1575.07 points. Following the mixed performance in Wall Street, the FBM KLCI could take a breather from recent gains and consolidate below the resistance of 1615 points.
Stocks to watch on corporate newsflow are: Tenaga Nasional is considering listing its power generation business on the local stock exchange next year, following a corporate reorganisation, based on a news report; Minetech Resources has bagged a subcontract worth RM15.04 million from KH Communication Sdn Bhd to supply and instal traffic signs and overhead signboards for Phase 1 of the Pan Borneo Highway project in Sarawak; GDex has received an approval letter from the Malaysian Investment Development Authority (MIDA) for a second round of integrated logistics services (ILS) tax incentive, via pioneer status, of up to 70% on statutory income for each year of assessment for a period of five years; Tropicana Corp is buying two pieces of contiguous freehold land next to its Tropicana Grandhill development in Bentong, Pahang for RM400 million to expand its landbank and enhance its property development profile in the Genting Highlands; Sime Darby Plantation has appointed PricewaterhouseCoopers (PwC) and an independent international NGO specialising in migrant worker rights to further strengthen its human rights commitments and compliance; Focus Dynamics has acquired a 16.67% equity stake in Hong Kong-listed food and beverage (F&B) group Top Standard Corp for RM7.85 million, as this is in line with its expansion plans with Oversea Enterprise to bring the Oversea brand onto the international stage; Spring Art has proposed a bonus issue of 166.27 million free warrants on the basis of two warrants for every five existing shares held to reward existing shareholders; Sarawak Energy and Petronas signed a Memorandum of Understanding (MoU) to collaborate on green hydrogen commercial production and its value supply chain exploration in Asia; RCE Capital’s 2Q net profit increased to RM33.0 million compared with RM27.2 million in the corresponding quarter thanks to the increase in early settlement income arising from higher refinancing activities by customers; Nestle saw its 3QFY20 net profit drop 13.16% yoy, as the Covid-19 pandemic impacted the food and beverage manufacturer’s hotel, restaurant and café (HORECA) channel sales coupled with higher operational expenses; KLCCP Stapled posted a net profit of RM156.66 million for its 3QFY20, declining 13.6% yoy due to lower revenue, -11.6% amid the prolonged pandemic and the various phases of lockdown that came into effect since March 18; Careplus has suspended factory operations for two days as employees tested positive for Covid-19; The independent auditor of Daya Materials has expressed a disclaimer of opinion in the group’s audited financial statements for the 18-month period ended June 30, 2020.
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Created by jfapex | Aug 26, 2024
Pesona is valued at RM0.46 based on a Sum of Parts valuation, which also corresponds to a 13.0x 1-year forward PER of the Group’s FY25F EPS of 3.5 sen. This valuation is a discount to Bursa Construc