Daily Highlights - 31 December 2020

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Publish date: Thu, 31 Dec 2020, 08:58 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%

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