MQ Market Updates - 10 October 2023

MQ Trader

Publish date: Tue, 10 Oct 2023, 05:16 PM

KNM Group Bhd's share price fell almost 21 per cent and was the most actively traded counter in morning trade, following news that Sarawak's Yang di-Pertua Negeri Tun Pehin Sri Abdul Taib Mahmud's son Datuk Seri Mahmud Abu Bekir Taib, has taken a substantial stake in the company. Selling pressure pushed the stock down three sen, or 20.69 per cent, to 11.5 sen as at 11.40am. KNM Group's share price hit a low of 10 sen before rebounding. (NST)

Sime Darby Property Bhd and Maybank announced a partnership to integrate Maybank Home2u financing platform into Sime Darby Property's online booking system (OBS), offering instant home financing approval and competitive financing rates to homebuyers. In a press release issued on Tuesday, Maybank group CEO of community financial services Datuk John Chong said that this partnership complements Maybank's current holistic home ownership financing solutions, making home ownership easier. (TheEdge)

Tropicana Corporation Bhd and its education arm Tropicana Education Management Sdn Bhd (TEM) are being sued by Sunway REIT Management Sdn Bhd and Sunway Education Group Sdn Bhd for breach of agreement and double-dealing over the sale of shares and a stake in St Joseph International School operated by TEM. In the suit filed by Messrs Rosli Dahlan Saravana Partnership on Aug 25, RHB Trustees Bhd has also been named as a plaintiff. The three plaintiffs claim that Tropicana Corporation had offered to sell TEM and a portion of its Tropicana Corporation shares for an aggregate price of RM208 million in a letter to Sunway dated April 20, 2023. (TheEdge)

Top Glove Corp Bhd’s sales volume is expected to improve further in its first quarter (1Q) ending Nov 30, 2023, as glove demand continues to recover. This optimistic anticipation is supported by the depleting inventory of the group’s customers. Nevertheless, Top Glove’s bottom line will likely remain in the red in its new financial year ending Aug 31, 2024 (FY24). (TheStar)

Matrix Concepts Holdings Bhd’s upcoming projects in Malaysia Vision Valley (MVV) will run parallel with Bandar Sri Sendayan continued development, and this will spur its earnings growth further from financial year 2026 (FY26), says MIDF Research. However, the group’s near-term catalyst would come from land bank expansion in Labu with better earnings prospects expected from FY24, it added. (TheStar)

Hengyuan Refining Co Bhd has appointed Yin Lujiang as chief executive officer of the petroleum products refining and manufacturing group, effective immediately. He replaces Zulhazmi Mohamad, who is ceasing his duties and responsibilities as the acting CEO. In a filing with Bursa Malaysia on Monday, Hengyuan said Yin will undertake all duties and responsibilities from Zulhazmi. On Aug 8 this year, Zulhazmi, 52, had taken over that role from Li Bin, who had resigned citing health reasons. (TheEdge)

Tan Teng Boo, icapital.biz Bhd's designated person, believes there are now more reasons to buy Malaysian stocks for the long-term, thanks to the covergence of many positive factors. Tan, who has more than five decades of investment experience, said he now sees a good chance for Malaysian stocks to perform better than what was seen in the past. (TheStar)

Subsea cable installation and telecommunications infrastructure group OMS has put its plan to list on hold due to unfavourable market conditions. OMS would revisit the plan if and when the broader initial public offering (IPO) market improves, according to Reuters, quoting two sources who declined to be named as the matter was private. (NST)

Nextgreen Global Bhd (NGGB) held a product launching ceremony on Oct 6 in conjunction with the International Greentech & Eco Products Exhibition & Conference Malaysia 2023 (IGEM). In a statement last week, NGGB said IGEM was organised by the Ministry of Natural Resources, Environment and Climate Change (NRECC) and Malaysian Green Technology and Climate Change Corporation (MGTC). (TheEdge)

Construction companies are in an advantageous position to accelerate the progress of existing government projects and compete for upcoming ones, driven by improving operating conditions. RHB Research said the favourable factors include the resolution of political uncertainties related to state elections, a substantial budget of RM90 billion for development expenditure in 2024, a stable labour supply and manageable building material prices. (NST)

MIDF Research has upgraded Petronas Chemicals Group Bhd (PetChem) to “buy” at RM7.17 with a higher target price of RM7.61 (from RM6.72) and revised the earnings estimates for PCG investment in the construction of Asia’s largest advanced chemical recycling plant in Pengerang, Johor with capacity of 33 kilotonnes per annum (kTpa). (TheEdge)

CGS-CIMB Securities has maintained its “add” rating for Malaysia Airports Holdings Bhd (MAHB) at RM7.23, with an unchanged target price (TP) of RM7.76, and said investors should be prepared for the Malaysian Aviation Commission’s (Mavcom) proposed aeronautical tariff increase from Jan 1, 2024 to be delayed, as the regulator had not issued its final proposals, which need to be gazetted in Parliament. (TheEdge)

The Finance Ministry has agreed to provide a government guarantee for the Armed Forces Fund Board (LTAT) to take out a RM2 billion loan to undertake the general offer it proposed to privatise its 68.01%-controlled Boustead Plantations Bhd (BPlant) at RM1.55 per share. This was revealed by Defence Minister Datuk Seri Mohamad Hassan in Dewan Rakyat on Monday. LTAT is expected to fork out RM1.11 billion to acquire the remaining 716.66 million shares that are equivalent to a 31.99% stake in BPlant that it does not control. (TheEdge)

Source: New Straits Times, The Edge Markets 10 October 2023