MY Morning Wrap | Capital A's Aviation Division Explores Fundraising Exercise, Denies Share Placement Plan
Good morning mooers! Here are things you need to know about today's market:
●Stock Market Sells Off in Afternoon Trading Due to Rising Tensions in Middle East
●Bursa Malaysia Energy Stocks Close Mixed on Escalating Middle East Tensions
●Foreign Investors Continue to Sell Bursa Malaysia Equities for Seventh Consecutive Week
●Stocks to watch: Capital A, YNH Property
-moomoo News MY
Wall Street Summary
Indexes opened positively after an Iranian strike on Israel failed to cause widespread damage, but the stock market sold off significantly in the afternoon following news that Israel would respond soon. This led to investors pulling back, with Treasury yields increasing by nearly 5% while the market sank. The $S&P 500 Index(.SPX.US$ fell 1.20%, the $Dow Jones Industrial Average(.DJI.US$ fell 0.65%, and the $Nasdaq Composite Index(.IXIC.US$ fell 1.79% as a result of the heightened tensions in the Middle East.
Breaking News
Bursa Malaysia Energy Stocks Close Mixed on Escalating Middle East Tensions
Bursa Malaysia-listed energy stocks closed mixed on Monday despite initially rallying for the third straight day as the Energy Index attempted to chart a fresh three-year high. The index, which tracks 22 oil and gas stocks, rose as much as 1.7% before dipping into the red to close 0.27% lower. Dialog Group Bhd, the largest energy stock by market capitalisation, finished 0.86% lower at RM2.30 a share. Moody's Analytics warns that oil prices could add another US$5 per barrel in risk premium and increase to as high as US$95 per barrel following tensions in the Middle East. However, an escalation in the conflict could result in oil prices jumping to more than US$100 per barrel.
Foreign Investors Continue to Sell Bursa Malaysia Equities for Seventh Consecutive Week
Foreign investors have continued to sell Bursa Malaysia equities for the seventh consecutive week, with net sales of RM373.5mil despite a shortened trading week due to Hari Raya Aidilfitri. The weak sentiment on Wall Street amid stronger-than-expected inflation data has led to unpredictability on interest rate cuts by the Federal Reserve. The top sectors that saw net sales by foreign investors on Bursa Malaysia were financial services, utilities, and consumer products and services, while property, transport and logistics, and construction saw the most net inflows. Local institutions remained net buyers, while local retailers were net sellers for the fifth consecutive week.
Stocks to Watch
$CAPITALA(5099.MY$: Capital A, currently under Practice Note 17 (PN17) status, has announced that its aviation division is exploring a potential fundraising exercise but has no intention to undertake a private placement of new Capital A shares. The evaluation is still in its preliminary stage, and the board of directors has not been presented with a firm proposal to deliberate on. The company has advised shareholders not to speculate in the trading of shares in the company. Capital A is currently in talks to sell its aviation operation to AirAsia X Bhd, and negotiations have been extended to April 30.
$YNHPROP(3158.MY$: YNH Property has announced a delay in the completion of the independent review of its joint venture and turnkey construction agreements, which was initially slated to be completed this week. The company stated that it had only been able to move towards finalising the appointment of a professional firm after appointing a new audit committee chairman and engaging with new statutory auditors last month. YNH Property added that there will be a revised timeline for the intended appointment and the estimated completion date.
$MASTER(7029.MY$: Master Tec Group, an electricity cable manufacturer, is anticipating higher revenue growth and a demand shift towards aluminium conductors amid the recent surge in copper prices. The company's CEO, Tee Kok Hwa, stated that the production cost for copper conductors has increased by around 5%, and the company is passing on the higher cost to its customers. Master Tec has also observed a rising trend among customers preferring aluminium conductors. With the renewed surge in copper prices, the use of aluminium may expand to other applications, such as power cables for infrastructure.
$EPMB(7773.MY$: EP Manufacturing Bhd (EPMB) has announced that its wholly-owned unit, PEPS-JV (Melaka) Sdn Bhd (PJVM), has partnered with China-based BAIC Motor Corporation Ltd to assemble and manufacture BAIC's authorised model vehicles in Malaysia. Under the 10-year agreement, PJVM will be responsible for assembling and manufacturing the vehicles in Malaysia, ensuring that the assembly plant has a capacity of at least 5,000 vehicles per year by September 1, and at least 10,000 vehicles per year by March 1 next year.
$EDUSPEC(0107.MY$: Eduspec Holdings, an education technology products and services provider, has appointed its new substantial shareholder Datuk Kang Pang Kiang as executive deputy chairman, effective Monday. Kang Pang Kiang, who is currently the CEO of electronic manufacturing services firm EG Industries Bhd and the largest shareholder with a 15.71% stake, will take on the new role in Eduspec Holdings.
$HTPADU(5028.MY$: HeiTech Padu has announced that it has secured a RM190.01 million contract to provide maintenance and technical support services for the Road Transport Department's (JPJ) information and communications technology infrastructure and MySIKAP (driver and vehicle information) system. The three-year contract will begin in May 2024 and involves the provision of services at JPJ offices throughout the country. While details of the job scope were not disclosed, the contract value is higher compared to previous similar contracts awarded to the group by JPJ.
$IRIS(0010.MY$: Iris Corp has announced the termination of the sale of an 80% stake in its wholly-owned subsidiary, Iris Information Technology Systems Sdn Bhd (IITS), which was the former developer of the RM1.16 billion National Integrated Immigration System (NIISe) project, for RM70 million cash. The agreement was terminated after the buyer, Tass Tech Technologies Sdn Bhd (TTTSB), failed to pay the second tranche of the deal's disposal consideration. IITS lost the RM1.16 billion contract to develop the NIISe after the Home Ministry terminated the job in August last year due to its failure to meet the project's planning schedule.
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.
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