Market Thoughts
The U.S. stock market extended its slide after the strong labour market data sent 10-year treasury yield to the highest level since 2007. Similarly, European stocks finished mostly negative after the business activity in the Euro zone contracted to 47.1 in September 2023 reading.
On the local market, the FBM KLCI snapped a 4-day losing streak to tick 2.02 points or 0.14% higher at 1450.23 points. The FBM KLCI may drift lower with support at 1433 points.
Among stocks to watch are: Chin Hin Group Bhd said it will be making a mandatory general offer for the remaining shares in Ajiya Bhd at RM1.53 per share, but intends to maintain Ajiya's listing status., ITMAX System Bhd has bagged a RM111.2 million contract from the Iskandar Puteri City Council to provide video surveillance and smart traffic light system services in Iskandar Puteri, Johor, United Malacca Bhd saw its net profit for the first financial quarter ended July 31, 2023 fall 89% to RM2.68 million, cut-off date for the proposed disposal of a 33% stake in Boustead Plantations Bhd by the Armed Forces Fund Board (LTAT) has been extended for the second time, CTOS Digital Bhd subsidiaries have entered into recurrent related party transactions (RRPTs) of a revenue or trading nature for an aggregated value of RM4.06 million, LFE Corp Bhd has entered into a conditional share agreement with Patrick Heng Jin Wei to buy 100,000 shares representing the remaining 40% equity of LFE Development Sdn Bhd (LDSB) for RM3.5 million cash.
Malaysia News & Highlights
Economics
Malaysia's CPI growth stayed at 2.0% in August, core inflation down to 2.5%
Malaysia's headline inflation, as measured by the consumer price index (CPI), grew 2.0% in August, the same growth rate recorded in July, as overall prices for food, restaurants and hotels recorded a slower increase in the month under review. Price increases at restaurants and hotels slowed to 4.7% in August, down slightly from 5.0% last month, while food and non-alcoholic beverages grew 4.1%, a decline from 4.4% in July, according to data from the Department of Statistics Malaysia (DOSM) on Friday.
Quarter Results
United Malacca 1Q net profit down 89% on lower contribution from Malaysian ops
Plantation group United Malacca Bhd saw its net profit for the first financial quarter ended July 31, 2023 (1QFY2024) fall 89% to RM2.68 million from RM24.3 million a year earlier on lower contribution from its Malaysian operations. As a result, its earnings per share for 1QFY2024 came in lower at 1.28 sen compared with 11.59 sen for 1QFY2023.
Company Development and Outlooks
Tanco MD raises stake in group, shares see active trading
Tanco Holdings Bhd's group managing director Datuk Seri Andrew Tan Jun Suan has raised his indirect shareholding in the group to 785.06 million shares or a 39.59% stake after acquiring five million shares on Friday. Tan bought the stake in the open market via TJN Capital Sdn Bhd on Friday at 56 sen per share, according to the group's bourse filing. This values the purchase at RM2.8 million.
Compugates unit to seek leave to appeal court order requiring return of part of deposit to JV partner
Compugates Holdings Bhd said its 70%-owned unit, Compugates Development and Mining Sdn Bhd (CDMSB), will apply for leave to appeal against the Court of Appeal order requiring CDMSB to refund RM3 million from the initial deposit paid by its joint-venture (JV) partner for a proposed mixed development project. The JV partner, Main Uptown Sdn Bhd, had appealed to the Court of Appeal against the decision made earlier by High Court relating to the proposed project, and the Appeals Court had on Aug 28 allowed the appeal in part.
Symphony Life proposes 1-for-2 rights issue of warrants to repay bank borrowings
Symphony Life Bhd has proposed a renounceable rights issue of warrants for the basis of one warrant for every two existing shares, to raise up to RM35.8 million. The actual amount depends on the final issue price of the warrants, but the company plans to utilise this for its bank borrowing repayments amounting to RM34.97 million in a maximum scenario, according to its filing on Friday (Sept 22).
LFE Corp to buy remaining 40% stake in LFE Development for RM3.5 mil
LFE Corp Bhd has entered into a conditional share agreement with Patrick Heng Jin Wei to buy 100,000 shares representing the remaining 40% equity of LFE Development Sdn Bhd (LDSB) for RM3.5 million cash. In its Bursa filing on Friday (Sept 22), LFE which currently owns a 60% stake in LDSB, said that the purchase consideration was arrived at on a willing-buyer willing-seller basis between the parties, and LDSB will be a wholly-owned subsidiary under LFE after the exercise.
Chin Hin bumps up stake in Ajiya, triggering MGO at RM1.53 per share
Chin Hin Group Bhd said it will be making a mandatory general offer (MGO) for the remaining shares in Ajiya Bhd at RM1.53 per share, but intends to maintain Ajiya's listing status. This comes after the building material specialist on Friday entered into share sale agreements with How Lian Yeong and Ong Hang Ping for the proposed acquisition of a 2.11% stake or 6.22 million shares in Ajiya for RM9.51 million or RM1.53 per share.
Petronas, Mitsui, MISC to jointly develop LCO2 carriers for CCS projects in Malaysia
Petroliam Nasional Bhd’s (Petronas) wholly-owned subsidiary Petronas CCS Ventures Sdn Bhd has signed a term sheet with Mitsui OSK Lines Ltd (MOL) and MISC Bhd for the potential incorporation of a joint-venture entity to invest in developing and monetising liquefied carbon dioxide (LCO2) carriers for carbon capture and storage (CCS) projects in Malaysia. The parties have agreed in principle on the key commercial terms to allow progress to the next stage.
KLK-Boustead Plantation deal cut-off date postponed again to Oct 6
The cut-off date for the proposed disposal of a 33% stake in Boustead Plantations Bhd (BPlant) by the Armed Forces Fund Board (LTAT) has been extended for the second time. Kuala Lumpur Kepong Bhd (KLK), which is acquiring the 33% stake from LTAT and Boustead Holdings Bhd, said the three parties have agreed for the cut-off date for the strategic collaboration agreement (SCA) to be extended for another two weeks to Oct 6.
Contract Secured and Awards.
CTOS Digital units enter into RM4 mil worth of recurrent related party transactions
CTOS Digital Bhd’s wholly-owned subsidiaries, CTOS Data Systems Sdn Bhd, CTOS Basis Sdn Bhd and CTOS IDS Sdn Bhd, have entered into recurrent related party transactions (RRPTs) of a revenue or trading nature for an aggregated value of RM4.06 million. In a Bursa Malaysia filing on Friday, CTOS Digital said the RRPTs were entered into with CIBI Holdings Pte Ltd, Credisense Ltd, Creador Sdn Bhd and CIBI Information Inc.
ITMAX System bags RM111m job to provide closed circuit camera system in Johor
ITMAX System Bhd, which is primarily involved in the business of supply, installation and provision of public space networked systems, has bagged a RM111.2 million contract from the Iskandar Puteri City Council to provide video surveillance and smart traffic light system services in Iskandar Puteri, Johor.
In a filing with Bursa Malaysia on Friday, ITMAX said its 65%-owned subsidiary Southmax Sdn Bhd has secured a letter of award (LOA) for the project.
Source : TheEdgeMalaysia
Foreign News
Dow slides 100 points on Friday, S&P 500 and Nasdaq post worst weeks since March after Fed update
U.S. stocks retreated on Friday, concluding what has been a tough week for the market. The Dow Jones Industrial Average slid 106.58 points, or 0.31%, to close at 33,963.84. The S&P 500 shed 0.23% to 4,320.06. The Nasdaq Composite slipped 0.09% to 13,211.81. Friday’s slide marked the fourth straight day of losses for the three major indexes. The losing streak came as investors reacted to a signal from the Federal Reserve that it intended to keep interest rates higher for longer.
European markets close lower on prospect of higher for longer rates; AstraZeneca up after positive drug trial
European markets closed lower on Friday as the prospect of higher for longer interest rates emerged from a slew of central bank decisions this week. index ended the session down 0.3%, taking its losses for the week to 1.57% — its worst performance since mid-August, according to LSEG data. Construction and material stocks dropped 0.9% Friday, while tech stocks added 0.77%.
Oil ends week lower as demand concerns face Russia supply ban (Overnight Closing)
Oil prices held steady on Friday but closed the week lower on profit-taking and as markets weighed supply concerns stemming from Russia's fuel export ban against demand woes from future rate hikes. Brent futures settled 3 cents lower at $93.27 a barrel. It fell 0.3% in the week, breaking a three week streak of gains. U.S. West Texas Intermediate crude (WTI) futures rose 40 cents, or 0.5%, to $90.03 a barrel, as U.S. oil rig counts fell. The benchmark fell 0.03% for the week, the first decline in four weeks.
Gold set to snap three-day losing streak despite dollar strength (Overnight Closing)
Gold prices edged higher on Friday following weak economic data out of Europe and a week of key central banks deciding to stand pat on interest rates, although a stronger dollar kept bullion gains in check. Spot gold XAU= was up 0.3% at $1,924.70 per ounce, as of 0951 GMT, following three sessions of losses. U.S. gold futures GCcv1 rose 0.3% to $1,945.40. France's dominant services sector contracted at an even sharper pace in September, a monthly survey showed, as falls in demand and new orders weighed on the euro zone's second-biggest economy.
BOJ keeps ultra-loose policy, dovish guidance, yen skids
The Bank of Japan maintained ultra-low interest rates on Friday and its pledge to keep supporting the economy until inflation sustainably hits its 2% target, suggesting it was in no rush to phase out its massive stimulus programme. The BOJ's decision contrasts with those of U.S. and European central banks, which in recent meetings have signalled their resolve to keep borrowing costs high to rein in inflation. Governor Kazuo Ueda said Japanese companies were hiking prices more than expected, preventing inflation from slowing, suggesting that conditions for dialing back monetary support were gradually falling into place. But he stressed the need to spend more time assessing data, particularly wages and service prices, before raising interest rates.
US weekly jobless claims drop to eight-month low; labor market remains tight
The number of Americans filing new claims for unemployment benefits dropped to an eight-month low last week, pointing to persistent labor market tightness even as job growth is cooling. The report from the Labor Department on Thursday also showed unemployment rolls in early September were the smallest since January. It was published a day after the Federal Reserve held interest rates steady but stiffened its hawkish stance, with a further rate increase projected by the end of the year and monetary policy to be kept significantly tighter through 2024 than previously expected.
Disclaimer
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.455268 | 4.488135 |
EUR | 4.716585 | 4.723137 |
CNY | 0.616518 | 0.616862 |
HKD | 0.572409 | 0.576643 |
SGD | 3.318330 | 3.343262 |