The DJIA and S&P 500 posted all-time closing highs after Moderna released trial data showing its coronavirus vaccine was more than 94% effective, further raising hopes of economic recovery. This was followed by Pfizer and BioNTech’s positive announcement last week.
Similarly, the pan-European Stoxx 600 closed up by 1.3% provisionally, with oil and gas stocks led the gains, as market sentiment boosted by positive news from Moderna.
On the local market, the FBM KLCI gained 9.97 points or 0.63% to 1599.66 points. Following the positive tone posted by the overseas markets, the local benchmark index is expected to continue its upward momentum with its resistance level of 1615 points. Cyclical stocks play or recovery theme such as banking, gaming, aviation, O&G are continued to be under investor interest, whilst Glove and Tech. could be subject to sell off.
Stocks to watch based on corporate newsflow are: MMAG acquired an 80% stake in chartered flight company JT Aerotech Solutions Sdn Bhd for RM21.36 million cash. It bought the stake from JT Aerotech Solutions Sdn Bhd, which will hold a 20% stake in M Jets. MMAG said the acquisition will allow it to complete its supply chain with first mile, middle mile and last-mile delivery to be the nation’s first local full-fledged integrated supply chain management company from the private sector with its own air cargo services; Sapura Energy’s engineering and construction (E&C) and drilling segments have secured a total of RM611 million in contracts in Qatar, the Republic of Congo Malaysia and Thailand; Revenue Group secured a contract to develop and implement the MyDebit tokenisation platform (TSP) for Payments Network Malaysia Sdn Bhd (PayNet), the national payments network and central infrastructure for Malaysia's financial markets; Chin Hin’s founder Datuk Seri Chiau Beng Teik has emerged as a substantial shareholder in frozen food manufacturer Saudee Group after acquiring 8.1 million shares or a 5.02% stake in the company in the open market yesterday; Bursa Malaysia has advised investors to exercise caution in the trading of Gets Global shares, which have been skyrocketing to RM3.97 from barely nine sen at end-July; Top Glove’s worker dormitory is subject to an Enhanced Movement Control Order (EMCO) from Nov 17 to Nov 30. Approximately 13,190 staff and some 1,200 residents in the area will be impacted by the move; Dialog’s 1QFY21 net profit fell by 10.9% yoy on lower revenue; Lii Hen’s 3QFY20 jumped by 32.21% yoy on higher demand for its products, boosted by a better US dollar; MSM’s 3QFY20 net loss narrowed to RM71.21 million, from RM185.1 million a year prior following improved sales margins and new export products; IOI Corp’s 1QFY21 saw its net profit increase by 86.5% to RM277.9 Millie from RM149 million in the previous corresponding quarter on higher crude palm oil and palm kernel prices.
Malaysia News & Highlights
Contract Secured and Awards
Comment: The latest contract win will lift its orderbook to about RM13.9b and is within our expectation. Maintain BUY with an unchanged target price of RM0.20 based on 3-year mean P/B and a NTA of RM0.60 per share.
Economics
Quarterly Results
Company Developments and Outlooks
Changes in key Management and Board Members
Foreign News
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