Market Review

The FBMKLCI closed at its intraday high on Tuesday at 1,607.0 (+0.7%), driven by bargain hunting in selected heavyweight counters, led by utility d plantation stocks. Among he index constituents YTLPOWER (+7.3%), YTL (+6.9%) and PETDAG (+4.8%) were the top three gainers. Among the sectors, the top three best-performing sectors were Technology (+1.4%), Utilit es (+2.1%) and Healthc re (+1.4%). The overall broader market breadth turned positive, with 683 gainers outweighing 432 losers.

Economics

Japan: BOJ weighs case for first triple hike since Japan's bubble burst

Bank of Japan (BOJ) governor Kazuo Ueda has plenty of data to support the case for raising the benchmark rate in December, an outcome that would mark the first tightening of policy three times in a calendar year since the peak of Japan's asset bubble in 1989. The governor appears determined to weigh his options until the last minute before the Dec 19 decision. He will sift through forthcoming numbers, including the central bank's Tankan survey on Dec 13, and monitor the US Federal Reserve's (Fed) own rate decision due several hours before the BOJ's board sets policy. Still, expectations of a near- term move are rising. Ueda reiterated in an interview published on Saturday that authorities will raise rates if the economy performs in line with projections, and he went a step further by saying the timing for a hike is "nearing" precisely because forecasts have proved prescient. Inflation momentum has been sustained, businesses are planning to invest, and wages are rising. (Bloomberg)

China: Bans export of key minerals to US as trade frictions escalate

China has banned exports to the US of items related to the minerals gallium, germanium and antimony that have potential military applications, its commerce ministry said on Tuesday, a day after Washington's latest crackdown on China's chip sector. Beijing's directive on so-called dual-use items with both military and civilian use, which cites national security concerns and takes immediate effect, also requires stricter review of end-usage for graphite items shipped to the US. "In principle, the export of gallium, germanium, antimony and superhard materials to the United States shall not be permitted," the ministry said. (Reuters)

US: Fed's Williams eyes further cuts as price pressures cool further

Federal Reserve Bank of New York President John Williams said on Monday the U.S. central bank is likely to lower its interest rate target further over time as inflation pressures continue to cool. "Monetary policy remains in restrictive territory to support the sustainable return of inflation to our 2 percent goal," Williams said in the text of a speech to be delivered before a gathering of the Queens Chamber of Commerce, held in New York. Looking ahead, "I expect it will be appropriate to continue to move to a more neutral policy setting over time," Williams said, adding "the path for policy will depend on the data. If we've learned anything over the past five years, it's that the outlook remains highly uncertain." (Reuters)

Companies

Mah Sing: Buys Johor Bahru land for township project with GDV of RM463m

Mah Sing Group Bhd is acquiring 59.1 acres (23.9 hectares) of prime land in the Pulai district of Johor Bahru for RM63m, which will be developed into super-linked homes with an estimated gross development value (GDV) of RM463m. Mah Sing said its wholly-owned unit Loyal Sierra Development Sdn Bhd had entered into sale and purchase agreements with Hau Enterprise Sdn Bhd and its shareholders - Chia Kim Heng, Chia Teck Heng, Low You Chone and Wong Moi Yong - to acquire the freehold land. "Named M Tiara 3, the township will feature spacious super-linked homes, with indicative home prices starting from RM780,000. The commencement of M Tiara 3 is expected to follow as a continuation of M Tiara 2," Mah Sing said in a filing on Tuesday. (The Edge)

T7 Global: Plans one-for-five bonus issue of warrants

T7 Global Bhd has proposed to undertake a bonus issue of up to 197.4m warrants, on the basis of one warrant for every five shares held by shareholders. The entitlement date and the exercise price of the warrants will be announced later, the company said in an exchange filing on Tuesday. "The proposed bonus warrants will not raise any immediate funds upon its issuance, as the warrants will be issued at no cost by the company to the entitled shareholders," said T7 Global. (The Edge)

Binastra: Wins RM328m building contract for Bukit Jalil serviced apartment

Construction outfit Binastra Corp Bhd on Tuesday said it had bagged a building contract worth RM327.7m to build two blocks of a 58-storey serviced apartment for The Vividz @ Bukit Jalil project. According to a bourse filing, the contract was awarded by Exsim Bukit Jalil City Sdn Bhd to Binastra's wholly-owned subsidiary Binastra Builders Sdn Bhd. Lee Seng Yong, who owns a 13% stake in Binastra and serves as an executive director of the company, is also a shareholder of Exsim Bukit Jalil City, where he holds a 5% stake via TRE Towers Holding Sdn Bhd. (The Edge)

Cloudpoint: Accepts RM33.6m contract to implement service management solutions

Cloudpoint Technology Bhd's wholly-owned subsidiary Cloudpoint Solutions Sdn Bhd has accepted a contract from a local bank to implement ServiceNow's integrated service management automation (ISMA) solutions for RM33.6m. In a filing with Bursa Malaysia, Cloudpoint said the job includes implementation services over a period of 12 months, cloud subscription for three years, subscription of software licences for three years and warranty support for 12 months from the production live date. (The Star)

Solarvest: Acquires 30% equity in waste gas abatement machine manufacturer

Solarvest Holdings Bhd has acquired 450,000 shares representing 30% of the equity interest in SIW Manufacturing Sdn Bhd for RM36m as it continues to expand its presence in clean energy and sustainable technology ecosystems. According to a filing with Bursa Malaysia, SIW Manufacturing is principally involved in manufacturing in waste gas abatement machines and gas system-related modules and components for the semiconductor industry. (The Star)

MMAG: Appointed dedicated narrow body freighter operator for MAB Kargo

MMAG Holdings Bhd said its subsidiary MJets Air Sdn Bhd has been appointed by Malaysia Airlines Bhd as its dedicated narrow body freighter operator for cargo unit MAB Kargo Sdn Bhd. "The letter of award (LoA) will enable the Parties to continue building on their existing collaboration, further optimising cargo transportation and logistics services to streamline operations and enhance efficiency, with the potential to generate mutual benefits for both entities and their respective clients," said MMAG in a filing with Bursa Malaysia. (The Star)

PJBumi: Inks collaboration with Intlef Oil

PJBumi Bhd via its wholly-owned subsidiary PJBumi Heavy Engineering & Services Sdn Bhd (PJBumi HES) has entered into an agreement with Intlef Oil and Gas Group Co Ltd to establish a strategic partnership for any identified contracts to supply oil field equipment and manufacturing of land rigs in Malaysia and Indonesia though licences awarded to PJBumi HES. "The collaboration of both parties is needed to able kick-start the project. "The parties have agreed to co-operate and collaborate with each other and join their respective expertise, knowledge and resources in for the success of the collaboration," said PJBumi in a filing with Bursa Malaysia. (The Star)

Majuperak: Names Rapid Bus' Muhammad Yazurin as its new CEO

Radium Development Bhd's wholly-owned subsidiary Mayang Sepakat Sdn Bhd has inked a deal with Ampang Jaya City Council to acquire a 2.6-acre tract of leasehold land in Ulu Langat, Selangor, for RM45m. The group said in a stock exchange filing the proposed acquisition is an opportunity for it to accumulate strategic land for property development. (The Star)

Source: Mercury Securities Research - 4 Dec 2024