MY Morning Wrap | AirAsia X Announces Mechanics of Planned Takeover of Capital A's Aviation Business
Good morning mooers! Here are things you need to know about today's market:
●Tech Stocks Drag Down Indexes on Thursday
●Malaysian Stock Market Ends Six-Day Winning Streak Amidst Selling Pressure
●Plastic Packaging Industry Viewed Optimistically by Market Insiders
●Stocks to watch: AirAsia X, Capital A
-moomoo News MY
Wall Street Summary
Indexes fell on Thursday due to a drop in big tech stocks. Shares of Meta Platforms (META.US) fell 10% after the company's updated revenue outlook for the year did not meet expectations. As of preliminary closing numbers, the $S&P 500 Index(.SPX.US$ was down around 0.46%, the $Dow Jones Industrial Average(.DJI.US$ fell about 0.98%, and the $Nasdaq Composite Index(.IXIC.US$ declined by about 0.64%.
Breaking News
Malaysian Stock Market Ends Six-Day Winning Streak Amidst Selling Pressure
After several consecutive days of gains, the Asia-Pacific stock market showed signs of fatigue, and the Malaysian stock market experienced a wave of arbitrage, ending its six-day winning streak. The FTSE Bursa Malaysia KLCI opened at 1573.29 points on Thursday but closed at 1569.25, down 2.23 points or 0.14%, unable to hold the key level of 1570 points. Petronas Chemicals Group (PCHEM) and Press Metal Aluminium Holdings (PMETAL) were the main heavy stocks that led the decline. The total trading volume for the day was 3.962 billion shares, with a value of MYR 2.829 billion. The FTSE Bursa Malaysia FBM Composite Index closed at 11,780.98 points, down 19.51 points, with 443 rising stocks, 581 falling stocks, 535 unchanged, and 807 untraded. As of 5 pm, the exchange rate was MYR 4.7790 per USD.
Plastic Packaging Industry Viewed Optimistically by Market Insiders
The plastic packaging industry is being viewed optimistically by market insiders due to rising resin prices and the continuing growth of the global plastic packaging market. Both TGUAN (7034) and BPPLAS (5100), Main Board industrial stocks, are expected to have positive outlooks. KPMG has forecasted a compound annual growth rate (CAGR) of 5% for the global plastic packaging market from 2021 to 2026. Local businesses are increasing their market share overseas, taking advantage of low energy costs and innovative products such as nanostretch films and single crystal films to meet sustainable development requirements. The analyst believes that the positive trend will continue until the second half of 2024 as global manufacturing activity and consumer spending gradually recover. Despite increasing operating costs, automation and cost reduction can solve the problem. The analyst has upgraded the rating for the plastic packaging sector from "neutral" to "buy" and is optimistic about TGUAN and BPPLAS due to their active exploration of domestic and foreign markets and expansion of high-quality products.
Stocks to Watch
$AAX(5238.MY$: AirAsia X Bhd (AAX) has announced the mechanics of its plan to take over Capital A Bhd's aviation business. The plan involves an internal reorganisation, with the setting up of a new company (NewCo) that will take over the listing status of AAX. The NewCo will then acquire Capital A's aviation business for RM6.8 billion and issue free warrants on the basis of one warrant for every two NewCo shares held, with an exercise price to be determined later. It will also undertake a RM1 billion private placement, with a placement size to be determined by the issue price to be set later. After the issuance of warrants and placement, the NewCo intends to undertake a reduction of its share capital to eliminate accumulated losses of RM3.27 billion. Meanwhile, Capital A plans to distribute RM2.2 billion worth of the NewCo shares it is getting to its existing shareholders, based on their respective shareholdings in the group.
$VITROX(0097.MY$: ViTrox Corp Bhd has reported a significant decline in net profit for the financial quarter ended March 31, 2024 (1QFY2024). The decline is mainly attributed to an unfavourable product mix and higher research and development (R&D) expenditures. Net profit fell 47.8% year-on-year to RM17.23 million from RM33 million, while revenue declined 10.3% to RM119.61 million from RM133.33 million. This marks the fifth consecutive quarter of year-on-year decline for the group.
$PAVREIT(5212.MY$: Pavilion Real Estate Investment Trust (PavREIT) has reported a significant jump in net property income (NPI) for the first quarter of the financial year ending June 30, 2024 (1QFY2024). The NPI increased 33.2% year-on-year to RM136.02 million from RM102.1 million, thanks to the contribution from its newly acquired mall, Pavilion Bukit Jalil, and higher occupancy rates and revenue rent from its other retail malls. Gross revenue also climbed 39.7% to RM218.52 million from RM156.41 million. PavREIT has declared a distribution of 2.48 sen per unit for 1QFY2024, to be paid with its distribution for the quarter ending June 30, 2024 (2QFY2024).
$LUXCHEM(5143.MY$: Luxchem Corp Bhd has reported a significant increase in net profit for the first quarter of the financial year ending December 31, 2024 (1QFY2024). The net profit surged over 54% to RM11.56 million from RM7.5 million a year earlier, while revenue rose 19.8% to RM183.15 million from RM152.83 million a year ago, driven by its trading and manufacturing segments.
$MKH(6114.MY$: MKH Oil Palm (East Kalimantan) Bhd (MKHOP) has reported a net profit of RM16.02 million on the back of RM86.05 million revenue for the second quarter of the financial year ending June 30, 2024 (2QFY2024), ahead of its listing on Bursa Malaysia's Main Market on April 30 with an initial public offering (IPO) price of 62 sen per share. On a quarter-on-quarter (q-o-q) basis, MKHOP's earnings jumped 44.39% from RM11.09 million in the preceding quarter, as revenue increased 4.55% from RM83.3 million, due to higher average prices of crude palm oil (CPO) and palm kernel (PK) realised.
$PANTECH(5125.MY$: Pantech Group Holdings Bhd has announced that it is considering listing two wholly-owned subsidiaries, namely Pantech Stainless & Alloy Industries Sdn Bhd and Pantech Steel Industries Sdn Bhd, on the Main Market of Bursa Malaysia via a special purpose vehicle (SPV). However, the plans are still at the preliminary stage, and extensive preparatory work needs to be carried out, according to Pantech's bourse filing. Pantech Stainless & Alloy specialises in producing high-quality stainless steel welded pipes and butt-weld fittings, while Pantech Steel manufactures carbon steel butt welded fittings, pipe fittings, and high-frequency induction long bends for the oil and gas industry, marine and shipyard, petrochemical, and power plant.
Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The EDGE
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三思后行 : Thanks for sharing.
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