MY Morning Wrap | Debt-to-GDP Ratio Estimated at 63% This Year
Good morning mooers! Here are things you need to know about today's market:
●Nasdaq falls to end week after volatile session
●Debt-to-GDP ratio estimated at 63% this year
●On track to hit targeted social assistance
●Pressing the accelerator on EV adoption
●Chewing tobacco tax announced with rise in sugary drinks tax
●Stocks to watch: TIME dotCom
-moomoo News MY
Wall Street Summary
The threat of broader conflict in the Middle East drove investors to safe-haven assets like U.S. Treasurys, gold and utility stocks Friday, while rising oil prices lifted energy shares.
Technology stocks and shares of companies that depend on discretionary spending, including casinos, cruise lines and dating apps, fell. The tech-heavy $Nasdaq Composite Index(.IXIC.US$ lost 1.2%, while the $S&P 500 Index(.SPX.US$ shed 0.5%. The $Dow Jones Industrial Average(.DJI.US$ , buoyed by gains in UnitedHealth Group, Chevron and JPMorgan Chase, added 0.1%, or about 39 points.
Breaking News
Debt-to-GDP ratio estimated at 63% this year
The country's debt-to-gross domestic product (GDP) ratio is estimated to record about 63% in 2023 and dip to slightly below 60% in 2028, under a baseline scenario based on Malaysia's debt sustainability analysis (DSA). Likewise, the annual gross borrowing size reflects the fiscal consolidation trajectory with gross financing needs (GFN)-to-GDP ratio forecast to gradually reduce to 5.6% in 2028 compared with 12.3% in 2023.
On track to hit targeted social assistance
In 2023, about RM63.8bil or 3% of gross domestic product (GDP) was allocated for subsidies and social assistance. Almost 60% of that is used for broad-based fuel and electricity subsidies while the rest for Sumbangan Tunai Rahmah. This is targeted at the hardcore poor, who are considered eligible based on the poverty line index.
Pressing the accelerator on EV adoption
With the government’s push for the electric vehicle (EV) sector, experts believe the industry is set to take off, as efforts continue to boost the industry's development locally and encourage wider acceptance of EV use.
Chewing tobacco tax announced with rise in sugary drinks tax
The government has announced it will impose an excise duty on chewing tobacco at a rate of 5% plus RM27 per kg under Budget 2024. Prime Minister Datuk Seri Anwar Ibrahim said this would be similar to the excise duty applied to snuff. Chewing tobacco is said to have a very niche market, with not many of the younger generations choosing to opt for it as opposed to cigarettes or vapes.
Stocks to Watch
$TIMECOM(5031.MY$ : The Employees Provident Fund (EPF) has raised its stake in TIME dotCom Bhd to 9% after acquiring a 1.47% stake in the telecommunications service provider and data centre operator. The pension fund acquired an aggregate 27.91 million shares and disposed of 769,500 shares on Oct 10 — translating to a net acquisition of 27.14 million shares or 1.47% stake.
$HIBISCS(5199.MY$ : Hibiscus Petroleum Bhd's wholly owned unit Anasuria Hibiscus UK Ltd has received conditional approval for its proposed acquisition of a 42.5% stake in Rapid Oil Production Ltd’s licence for an undeveloped oil field known as Fyne Field. Hibiscus said the approval by the North Sea Transition Authority is subject to the legal transfer of the farm-in-interest being done in a form approved by the authority. It is also subject to the acquisition being completed by Jan 9, 2024.
$HEXZA(3298.MY$ : Hexza Corp Bhd spent US$7.77 million (RM36.72 million) to acquire 185,000 shares in Nasdaq-listed robotics warehouse automation company Symbiotic Inc. Hexza spent US$7.77 million (RM36.72 million) to acquire 185,000 shares in Nasdaq-listed robotics warehouse automation company Symbiotic Inc. Meanwhile, Hexza disposed of 10,000 shares in graphics processing unit designer Nvidia Corp for US$4.63 million on the Nasdaq stock market. It sold the block of shares at US$463.20 apiece on Wednesday.
$ONEGLOVE(5079.MY$ : One Glove Group Bhd plans to undertake a capital reduction of RM120 million to eliminate accumulated losses of the glove manufacturing company. The balance, if any, will be credited to a capital reserve account of the company, which will be used towards setting off future losses. As of Thursday, One Glove had a total of 441.21 million shares in issue. In addition, it had 87.5 million irredeemable convertible preference shares held by BT Capital Sdn Bhd, and 71 million outstanding warrants 2023/2028 in the company.
$DOLPHIN(5265.MY$ : Palm oil mill manufacturer Dolphin International Bhd has decided not to proceed with a rights issue that it had proposed early this year for now, as it intends to relook into the exercise in its entirety and revise the utilisation of the proceeds to be raised. Dolphin said the decision came after taking into consideration the group’s recent financial performance, as well as the changes in its financial needs.
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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