Daily Highlights - 23 December 2020

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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

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