MY Morning Wrap | Malakoff Secures Solar Agreement with RAC and KTMB
Good morning mooers! Here are things you need to know about today's market:
●U.S. stocks close at year highs, market looks towards FOMC decision
●Strong 4Q on the cards
●Construction companies set to benefit from big infrastructure projects
●Malaysia's palm oil stocks falls 1.09% to 2.42 mln tonnes in November
●Bursa Malaysia Derivatives launches first currency futures contract
●Stocks to watch: CLMT, Yinson, Malakoff
-moomoo News MY
Wall Street Summary
U.S. stocks closed at year highs Tuesday afternoon as investors awaited the Federal Reserve’s interest rate announcement Wednesday and hope the latest inflation data doesn’t crimp optimism around rate cuts.
The $Dow Jones Industrial Average(.DJI.US$ gained 173 points, or 0.48% to 36,577. The $S&P 500 Index(.SPX.US$ $S&P 500 Index(.SPX.US$ rose 21 points, or 0.46% to 4,643. The $Nasdaq Composite Index(.IXIC.US$ rose 100 points, or 0.7% to 14,533.
Breaking News
Strong 4Q on the cards
Malaysia's industrial output will likely strengthen further towards the end of 2023, supported by a recovery in the manufacturing sector. This could point to stronger gross domestic product (GDP) growth in the fourth quarter of this year. Positively, economists expect the country’s industrial output to continue to accelerate into 2024, further supporting growth of the wider economy. In its report, Maybank Investment Bank (Maybank IB) Research said its monthly GDP tracker estimated that the economy grew 3.5% year-on-year (y-o-y) in October, up from 2.5.% y-o-y in the preceding month, following the latest industrial production index (IPI) reading. The stronger GDP tracker for October, the brokerage said, pointed to the prospect of further pick-up in GDP growth in the fourth quarter (4Q) of 2023. The GDP expanded 3.3% in 3Q23, up from 2.9% in 2Q23.
Construction companies set to benefit from big infrastructure projects
The transportation sector is set to further drive the construction industry forward, RHB Research says. Key rail projects that are pending and which may be built soon include the Penang Light Rail Transit (LRT), Klang Valley Mass Rapid Transit 3 (MRT3), the Johor Bahru LRT and the Kuala Lumpur-Singapore High Speed Rail projects. The research house said the total value of construction work done in the third quarter of 2023 grew by 9.6% year-on-year, or 3.4% quarter-on-quarter, to RM33.4bil, the highest in 14 quarters. Other notable anticipated developments will also come from Sabah and Sarawak, namely Phase 2 of the Sarawak-Sabah Link Road and Phase 1B of the Sabah Pan Borneo Highway.
Malaysia's palm oil stocks falls 1.09% to 2.42 mln tonnes in November; Crucial 2024 likely for palm oil industry
Malaysia's total palm oil stocks fell by 1.09 per cent to 2.42 million tonnes in November from 2.45 million tonnes in October, according to the Malaysian Palm Oil Board (MPOB). In its latest industry performance report for November 2023, the MPOB said crude palm oil (CPO) inventory decreased by 3.89 per cent to 1.34 million tonnes last month from 1.39 million tonnes in October. Meanwhile, processed palm oil stocks were higher by 2.62 per cent to 1.08 tonnes in November from 1.05 tonnes previously.
The Council of Palm Oil Producing Countries (CPOPC) views 2024 to be a critical year for the palm oil industry, underpinned by the upcoming enforcement of the new European Union Deforestation-Free Regulation (EUDR) as well as other new legislations.
Stocks to Watch
$CLMT(5180.MY$: CapitaLand Malaysia Trust Bhd has announced the conversion of its loan facility of RM693 million from CIMB Bank Bhd into a sustainability-linked loan facility for the purpose of funding the acquisition of Queensbay Mall in Penang. This new facility marks CLMT's largest loan to date and is tied to the sustainability performance targets of Queensbay Mall. As part of the deal, CIMB will offer CLMT interest rate rebates on the committed term loan facility, based on pre-determined sustainability performance targets set for Queensbay Mall.
$YINSON(7293.MY$: Yinson Holdings Bhd's Singapore-based unit, Yinson Production Offshore Pte Ltd, announced on Tuesday that it has secured a five-year corporate facility loan of up to US$500 million (RM2.34 billion). The Singapore branch of Natixis will serve as the coordinator, MLA and bookrunner for the facility loan, along with Affin Bank Bhd, AmInvestment Bank Bhd, CIMB Islamic Bank Bhd, ING Bank NV's Singapore branch, and United Overseas Bank Ltd (UOB).
$MALAKOF(5264.MY$: Malakoff Corp Bhd, through its wholly-owned subsidiary Malakoff Radiance Sdn Bhd, has obtained a solar agreement with Railway Assets Corp (RAC) and Keretapi Tanah Melayu Bhd (KTMB) for the development, operation, and maintenance of carport and rooftop solar systems at railway stations, depots, and a park-and-ride terminal located in Perak, Penang, Selangor, Johor, and Negeri Sembilan.
$BAUTO(5248.MY$: Bermaz Auto Bhd has reported a 37.19% increase in net profit for its second quarter ended October 31, 2023 (2QFY2024), amounting to RM90.1 million compared to RM65.67 million during the same period last year. The increase was attributed to stronger revenue, along with better share of results from associates and forex gains. The group has declared a second interim dividend of five sen per share to be paid on January 5, 2024, bringing its total dividends declared year-to-date to 10 sen per share, up from 6.5 sen per share a year ago. Bermaz's revenue also grew by 28.61% to RM1.01 billion in 2QFY2024 from RM782.97 million in 2QFY2023, driven by the strong performance of its Mazda operations in Malaysia, particularly the CX-30 CKD model, which has seen higher sales since its launch in March.
$KAB(0193.MY$: Sustainable energy and engineering solution specialist, Kinergy Advancement Bhd (KAB), has partnered with Agromate Holdings Sdn Bhd, a leading fertiliser supplier, to lead the way in bioenergy or renewable energy generation across palm oil mills. Through this collaboration, KAB aims to tap into a mostly unexplored market with significant recurring income potential since Malaysia is the world's second-largest palm oil producer, having 447 palm oil mills with total processing capacity of 119.5 million tonnes per year.
$UNITRAD(0247.MY$: Unitrade Industries Bhd has proposed to enter the metal recycling market by acquiring a 51% stake in Intergreen Metals Sdn Bhd for RM66.3 million. This move is aimed at complementing the group's core operations in building materials wholesaling. The stake will be acquired from Intergreen Holdings Sdn Bhd (IHSB), Intergreen Corp (M) Sdn Bhd (ICSB), and Pong Wing Seng, with a guarantee that Intergreen Metals will achieve a profit after tax of RM45 million over three years.
$SCIB(9237.MY$: Sarawak Consolidated Industries Bhd (SCIB) has signed a memorandum of understanding (MOU) with Kemena City Development Sdn Bhd and Smart Borneo Properties Sdn Bhd for a potential joint venture residential development project in Bintulu, Sarawak, with a projected gross development value of RM250 million. The group's wholly owned subsidiary SCIB Properties Sdn Bhd inked the MOU with Kemena City Development Sdn Bhd and Smart Borneo Properties Sdn Bhd.
$BARAKAH(7251.MY$: Barakah Offshore Petroleum Bhd has proposed to hold an auction to find a buyer for its vessel, the Kota Laksamana 101 barge, for at least US$11.4 million (RM53.28 million) in cash. The company made this decision after four proposals by interested buyers over the past year had not materialized. Additionally, considering the group's financial standing and the barge's condition, retaining the barge would require the group to allocate resources for scheduled maintenance, certification validity, and physical or sea trials. The original investment cost for the barge was RM334.61 million.
$SCABLE(5170.MY$: Sarawak Cable Bhd (SCB), a Practice Note 17 (PN17) company, announced that it had found a white knight in Serendib Capital Ltd to undertake a "resuscitation exercise" to revive the loss-making manufacturer. SCB revealed in a statement filed with Bursa Malaysia that UK-based Serendib Capital had prepared a war chest of RM250 million to help pare down its debts, and to recapitalise the cable manufacturer "to cater to growing customer demand for infrastructure grid development and high-voltage cables".
Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The EDGE Malaysia
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wong nyuk meng : Of course, none of those that were weak and profitable went into banks, and all went into pocket banks