Daily Highlights - 28 December 2020

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Publish date: Mon, 28 Dec 2020, 09:05 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

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