Bloomberg Asia Stocks Rise on Bank Rescue, Bond Yields Climb: Markets Wrap Rob Verdonck and Tassia Sipahutar Fri, March 17, 2023 at 8:16 AM GMT+8·4 min read
The Sun Daily https://www.thesundaily.my › us-sto... US stocks end higher as major banks shore up First Republic 2 hours ago — All three major US indices finished firmly higher. The Dow Jones Industrial Average rose 371.98 points,
Above expectations Our FY23E-FY24E earnings estimates are raised by 9%-10% and we introduce FY25E. Into FY23, we expect LHIB’s operating landscape to improve with Malaysia’s poultry price controls coming to an end in Jul 2023 and expectations for more stable livestock and feed demand in its other respective countries of operations. Our TP is raised to MYR1.00 based on an unchanged 15x FY23E PER. Maintain BUY.
U.S. stocks end sharply higher as First Republic gets rescue from banks.
Last Updated: March 16, 2023 at 4:36 p.m. ET
U.S. stocks ended sharply higher Thursday as an agreement by a group of big banks to deposit $30 billion with troubled lender First Republic Bank helped soothe fears of a rolling banking crisis.
What’s happening
The Dow Jones Industrial Average DJIA rose 371.98 points, or 1.2%, to close at 32,246.55.
The S&P 500 SPX ended 68.35 points higher, up 1.8%, at 3,960.28.
The Nasdaq Composite COMP advanced 283.22 points, or 2.5%, to close at 11,717.27.
Stocks have seen volatile trade amid signs of stress in the banking system, but all three major indexes are on track for weekly gains. The Nasdaq Composite, up 5.2% through Thursday, was on track for its best week of 2023.
What’s driving markets
Worries about risk in the banking sector following the collapse of Silicon Valley Bank and two other U.S. lenders have weighed on markets over the past week, but negotiations toward a package to shore up First Republic FRC, which was then announced late in the afternoon, helped to ameliorate worries, market analysts said.
Bank of America BAC, Citigroup C, JPMorgan Chase JPM and Wells Fargo WFC said Thursday they are each making $5 billion uninsured deposits as part of a $30 billion package from 11 banks into First Republic Bank. U.S. regulators praised the move.
First Republic shares ended the day up 10%, erasing an earlier loss of 36%. Shares remain down more than 70% in March.
Mark Grant, chief global strategist at Colliers Securities, said a deal would shore up confidence in the most vulnerable regional U.S. lenders.
“It’ll calm the depositors greatly and I think the big banks also see this as an opportunity to grow their franchise at an opportunistic price,” Grant told MarketWatch, in a phone interview.
Earlier, Credit Suisse Group CS said it would borrow 50 billion francs ($54 billion) from the Swiss National Bank, which helped shares of the troubled Swiss lender rebound. Meanwhile, the European Central Bank’s decision to hike its policy rate by 50 basis points Thursday spurred expectations that central banks wouldn’t let worries about the banking sector distract them from taming inflation.
“I think the fact that [the ECB] went 50 is telling you, at a bare minimum, that inflation is at this point as important as financial stability,” said Michael Lebowitz, a portfolio manager at RIA Advisors, during a call with MarketWatch.
Meanwhile, Treasury Secretary Janet Yellen on Thursday told senators that the U.S. banking system stands on solid footing, following the government’s moves last weekend to backstop depositors at two failed banks.
“I can reassure the members of the committee that our banking system is sound, and that Americans can feel confident that their deposits will be there when they need them,” Yellen said as she testified before the Senate Finance Committee.
In U.S. economic news Thursday, jobless data showed fewer than 200,000 Americans claimed benefits last week, fewer than economists polled by The Wall Street Journal had expected. The data were the latest sign that the U.S. labor market remains robust, despite rising layoffs in the technology space and other parts of the economy.
“Strong demand for workers is still being signaled by a low level of jobless claims, solid job growth and elevated job openings,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics.
Companies in focus
Adobe Inc. ADBE shares climbed 5.8% after the software company topped Wall Street expectations with its quarterly earnings released Wednesday after the bell.
Shares of Charles Schwab Corp. SCHW fell 2.8%, even as executives disclosed that they had scooped up nearly $7 million worth of the financial-services giant’s beaten-down stock on Tuesday and Wednesday. Schwab shares have fallen 24% so far this month.
Intel Corp. INTC shares climbed 6.2% after Susquehanna analyst Christopher Rolland ended his bearish call the chip maker. Thursday, writing that “things are moving enough in the right direction.”
6633C6 LHI-C6 LHI-C6: CW LEONG HUP INTERNATIONAL BERHA Listing Information & Profile for Structured Warrants Instrument Category : Structured Warrants Instrument Type : CALL WARRANTS Description : European Style Non-Collateralised Cash Settled Underlying Stock : LEONG HUP INTERNATIONAL BERHAD Issuer : MAYBANK INVESTMENT BANK BERHAD Stock Code : 6633C6 Stock Short Name : LHI-C6 ISIN Code : MYL6633C6XB2 Board : Structured Warrants Sector : CONSUMER PRODUCTS & SERVICES Initial Listing Information : Listing Date : 21/12/2022 Term Sheet Date : 20/12/2022 Issue Date : 20/12/2022 Issue / Ask Price : Malaysian Ringgit (MYR) 0.1500 Issue Size in Unit : 100,000,000.0000 Maturity Date : 30/11/2023 Name of Guarantor: Not Applicable Name of Trustee: Not Applicable Coupon/Profit/Interest/Payment Rate: Not Applicable Coupon/Profit/Interest/Payment Frequency: Not Applicable Redemption: Not Applicable Exercise/ Strike/ Conversion Price : Malaysian Ringgit (MYR) 0.5800 Revised Exercise/ Strike/ Conversion Price : Exercise/ Conversion Ratio : 1:1 Revised Exercise/ Conversion Ratio : Settlement Type/ Convertible into : Cash Name and contact details of the market maker (if applicable) : Equity & Commodity Derivatives c/o Maybank Investment Bank Berhad 32nd Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur Tel: 03-2059 1888 Circumstances under which the market maker may not be able to provide quotes (if applicable) : Please refer to Section 4.4 of the Base Prospectus dated 8 December 2022. Remarks : You are advised to read the entire contents of the announcement or attachment. To read the entire contents of the announcement or attachment, please access the Bursa website at http://www.bursamalaysia.com
6633C5 LHI-C5 LHI-C5: CW LEONG HUP INTERNATIONAL BERHA Listing Information & Profile for Structured Warrants Instrument Category : Structured Warrants Instrument Type : CALL WARRANTS Description : European Style Non-Collateralised Cash-Settled Underlying Stock : LEONG HUP INTERNATIONAL BERHAD Issuer : AMBANK (M) BERHAD Stock Code : 6633C5 Stock Short Name : LHI-C5 ISIN Code : MYL6633C5X44 Board : Structured Warrants Sector : CONSUMER PRODUCTS & SERVICES Initial Listing Information : Listing Date : 14/07/2022 Term Sheet Date : 13/07/2022 Issue Date : 13/07/2022 Issue / Ask Price : Malaysian Ringgit (MYR) 0.1500 Issue Size in Unit : 80,000,000.0000 Maturity Date : 05/04/2023 Name of Guarantor: Name of Trustee: Coupon/Profit/Interest/Payment Rate: Coupon/Profit/Interest/Payment Frequency: Redemption: Exercise/ Strike/ Conversion Price : Malaysian Ringgit (MYR) 0.5500 Revised Exercise/ Strike/ Conversion Price : 0.0000 Exercise/ Conversion Ratio : 1:1 Revised Exercise/ Conversion Ratio : Settlement Type/ Convertible into : Cash Name and contact details of the market maker (if applicable) : AmBank (M) Berhad 22nd Floor Bangunan AmBank Group No. 55, Jalan Raja Chulan 50200 Kuala Lumpur Malaysia 03-2059 8698 Circumstances under which the market maker may not be able to provide quotes (if applicable) : Please refer to Section 5.2 of the Base Prospectus dated 24 August 2021. Remarks : You are advised to read the entire contents of the announcement or attachment. To read the entire contents of the announcement or attachment, please access the Bursa website at http://www.bursamalaysia.com
6633C5 LHI-C5 LHI-C5: CW LEONG HUP INTERNATIONAL BERHA Expiry/Maturity of the securities Instrument Category : Structured Warrants Instrument Type : CALL WARRANTS Exercise/ Strike/ Conversion Price : MYR 0.5500 Exercise/ Conversion Ratio : 1:1 Settlement Type/ Convertible into : Cash Last Date & Time for Trading : 03/04/2023 05:00 PM Date & Time of Suspension : 04/04/2023 09:00 AM Last Date & Time for Transfer into Depositor's CDS a/c : 05/04/2023 04:00 PM Date & Time of Expiry : 05/04/2023 05:00 PM Date & Time of Delisting : 06/04/2023 09:00 AM Remarks : You are advised to read the entire contents of the announcement or attachment. To read the entire contents of the announcement or attachment, please access the Bursa website at http://www.bursamalaysia.com
Buy some Lhi to keep. LHI is the largest biggest poultry producer in Malaysia. There is the room to growth as Raya is coming soon & prices of chicken and eggs are expected to be floated after June23.
Institutional investors terpaksa offer higher prices to encourage naive retailers to let go their lhi shares... Low free float...88% drp jumlah syer berada dalam tangan top 30 annual report terkini
Chew said Leong Hup has farms located across the country and the economies of scale to operate efficiently.
"Leong Hup is geographically diversified across five countries in the region with Malaysia contributing about 30 per cent of the group's total revenue," he said.
Chew said Leong Hup was involved in the commodity business and the management was cognisant of the importance of maintaining cost leadership.
"Leong Hup has been moving downstream by expanding The Bakers Cottage, our business-to-consumer channel in Malaysia. This is in line with the group's strategy to enhance the integration of its "Farm-to-Plate" business model," he added.
Egg production business to be sold for RM159m cash At the same time, LTKM also announced that it will dispose of its existing business to Ladang Ternakan Kelang Sdn Bhd (LTKSB) for a total cash disposal consideration of RM158.83 million.
LTKSB, which holds 71.6% of the equity interest in LTKM, is also the holding company of LTKM.
Buy some Lhi to keep. LHI is the largest biggest poultry producer in Malaysia. There is the room to growth as Raya is coming soon & prices of chicken and eggs are expected to be floated after June23.
Last year semasa pandemik, pelabur beli warrant pada harga 15sen seunit supaya dapat beli lhi pada 55sen dan 58sen respectively.
Kita kini boleh beli terus dari pasaran terbuka tanpa perlu bayar 15sen seunit bagi warrant dan juga dibawah harga exercise 55sen & 58sen kini... Greatly undervalued
KUALA LUMPUR: MIDF Research remains bullish on Leong Hup International Bhd's 2023 outlook as it anticipates solid demand for chicken and eggs in its various markets.
The research firm said the vertical integration of poultry, eggs, and livestock feed will also offset the downside in 2023.
In addition, the removal of the retail chicken price ceiling after Jun 2023 will benefit Leong Hup by allowing it to pass on higher costs to customers and improve margins.
"We maintain our 'buy' call on Leong Hup. Leong Hup is currently trading at an attractive FY24F PER of 5.5x, compared to its 2BUY call on Leong year historical average PER of 11.5x," said MIDF in a note.
The research firm maintained its target price on the share at 90 sen a share.
Leong Hup saw net profit in the fourth quarter ended Dec 31, 2022, more than double to RM90.7mil from RM38mil it had registered in the same quarter of 2021.
Revenue for the three months also jumped 28% to RM2.32bil from RM1.81bil previously.
During the quarter under review, Leong Hup's feedmill division's sales volume grew 5% year-on-year to 676,400 metric tonnes, while the utilisation rate increased 2.1ppt to 63.9%.
The group said this was mostly driven by greater output from the Philippines operation, although Indonesia continues to have the greatest production output within the group.
Meanwhile, higher sales in Indonesia and Malaysia increased the group's supply of broiler day-old-chicks.
"The volume of chicken supplied grew by 7.3% y-o-y to 39.8 million birds due to higher supply from operations in Indonesia, Vietnam, and the Philippines.
"On the other hand, the volume of eggs sold fell by 8.4% y-o-y to 439.6 million eggs mainly due to lower sales from Indonesia, Vietnam, and Malaysia operations," it said.
How retailers lose money in stock? Buy ipo at rm1.10, jualkan semua sebelum recovery restarted, untung 1-2sen lari, tak sabar to wait macam Investors. Tukar ke Stok lain, kasi komisen dan setem duti kpd bank dan kerajaan hahaha
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Good123
26,596 posts
Posted by Good123 > 2023-03-17 08:51 | Report Abuse
80mil warrant units expire next month with exercise price at 55sen are expected to be in the money before expiry date