MY Morning Wrap | Bursa Malaysia Expected to Show Steady Trading with Upside Potential This Week
Good morning mooers! Here are things you need to know about today's market:
●US Stock Market Rallies on Fed's Rate Decision, Apple's Earnings, and Strong Jobs Data; S&P 500, Dow Jones, and Nasdaq Post Weekly Gains
●Strengthening ESG Reporting Accountability Boosts Corporate Credibility
●Malaysia's 2024 Gold Jewelry Exports Expected to Grow 15%
●Bursa Malaysia Expected to Show Steady Trading with Upside Potential This Week
●Stocks to watch: Malaysia Smelting, Press Metal, LCT, Westports
-moomoo News MY
Wall Street Summary
Last Friday, the market was upbeat following the FOMC's decision to hold rates steady on Wednesday. Apple's earnings report and favorable job figures further lifted spirits. For the week, the $S&P 500 Index(.SPX.US$ rose 0.55%, gaining 1.26% on Friday. $Dow Jones Industrial Average(.DJI.US$ increased by 1.14% over the week, with a 1.18% rise on Friday, while the $Nasdaq Composite Index(.IXIC.US$ saw a weekly gain of 1.43% and a 1.99% boost on Friday.
Breaking News
Strengthening ESG Reporting Accountability Boosts Corporate Credibility
An academic from UiTM, Associate Prof Dr Seri Ayu Masuri Md Daud, suggests that plantation companies need to enhance the transparency and accountability of their ESG reporting to improve credibility. Her research indicates that current environmental disclosures in the plantation sector are often vague and lack specificity, with reports mostly containing "soft" information like vision statements. She highlights the issues of greenwashing and the gap between ESG aspirations and actual performance. To combat these challenges, she recommends establishing strict rules to prevent corporate and investor greenwashing and to ensure that funds are truly ESG-compliant.
Malaysia's 2024 Gold Jewelry Exports Expected to Grow 15%
Malaysia's gold jewelry exports are forecasted to increase by 15% in 2024, driven by stable interest rates as the US Federal Reserve shifts focus from inflation control to job market stability. Exports grew from RM7.39 billion in 2022 to RM7.7 billion in 2023, with the trend continuing into 2024. The appeal of gold as a safe, value-retaining asset, and increased central bank accumulation, possibly pushing prices to US$2,500 per ounce, supports this growth. The global gold jewelry market is also expected to grow from US$2.4 billion to US$2.9 billion by 2031. Key importers include Singapore, the UAE, the UK, India, and China. Domestic buying in Malaysia may increase due to a delayed tax on high-value goods. Penang is the hub for 80% of the country’s gold jewelry exports, with the majority of PGA members being SMEs. Recently, gold prices have surged past US$2,100 per ounce due to a combination of market factors.
Bursa Malaysia Expected to Show Steady Trading with Upside Potential This Week
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said Bursa Malaysia is poised for a steady week, expected to trade between 1,575 and 1,600 points, possibly extending to 1,620 points, backed by tech sector gains influenced by strong performances of global tech companies and Microsoft's investments in the region. The FBM KLCI remains bullish above its EMAs, with local institutional buying supporting the market around the 1,560-point level, and the 1,500-point mark standing as a key support.
Stocks to Watch
$MSC(5916.MY$: This company expects a profit rise in FY24 driven by a favorable tin market and strategic actions. CEO Datuk Patrick Yong sees a bright long-term prospect despite short-term volatility. Supply issues, due to mine closures in Myanmar, possible Indonesian export bans, and geopolitical unrest, along with higher electronics demand, are set to increase tin use and MSC's financial performance. The demand for tin in green tech, such as EV batteries and solar panels, amid a global push for sustainability, is also expected to boost tin prices and MSC's earnings in 2024.
$PMETAL(8869.MY$: Press Metal is serving the green market with specialized aluminum for automotive and solar sectors, boosting sales of value-added products. As Southeast Asia's top aluminum producer powered by hydroelectricity, they're ASI-certified for sustainability. Their shift to low-carbon aluminum secured a major contract with Daching Enterprises Ltd. Upcoming regulations like the EU's carbon tax and China's emissions trading may benefit Press Metal amid the industry's move to sustainability.
$LCTITAN(5284.MY$: This company anticipates widened losses in Q2 2024 due to lower sales and product spreads. Despite potential economic improvements and stimuli, a supply glut challenges LCT's short-term earnings. Maintenance in April 2024 may further reduce its production and sales. Analysts expect LCT's losses to continue amid global oversupply and predict tougher conditions from 2026. FY24 looks challenging for LCT with low product prices, reduced plant activity, tight margins, and high raw material costs.
$WPRTS(5246.MY$: Westports Holdings Bhd is set to maintain stable earnings with expected container volume growth of 4.2% for FY2024, driven by long-term customer contracts and regional trade. The gateway-to-transshipment ratio should remain high. Q1 2024 saw a net profit of RM204.5 million and a 6% revenue increase, mainly from a rise in container handling. Challenges include disruptions in Asia-Europe shipping routes and potential risks from geopolitical tensions. Westports is recognized for resilient earnings, growth from expansions, and competitiveness, despite potential limitations due to regional conflicts.
Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The EDGE
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
