MY Morning Wrap | Malaysia's Industrial Production Rebounds in July, Led by Mining and Electricity Sectors
Good morning mooers! Here are things you need to know about today's market:
●Shares in Tesla pulled US stock markets higher Monday
●Malaysia's Industrial Production rebounds in July, led by mining and electricity sectors
●Malaysia's 2Q23 earnings: Navigating through mixed signals
●RAM Ratings expects Malaysia's economy to grow at 4.5-5.5% in 2024
●FMM: Manufacturing sector to slow further 1H23, cautious about rest of the year
●Stocks to watch: CIMB, KLK
-moomoo News MY
Wall Street Summary
Shares in Tesla pulled stock markets higher Monday, thanks in large part to hype around a supercomputer dubbed "Dojo."
All three indexes opened in the green and stayed there through the closing bell, clawing back some of last week's losses. The $S&P 500 Index(.SPX.US$ climbed 0.7%, while the tech-heavy $Nasdaq Composite Index(.IXIC.US$ rose 1.1%. The $Dow Jones Industrial Average(.DJI.US$ gained 0.3%, or roughly 87 points.
Breaking News
Malaysia's Industrial Production rebounds in July, led by mining and electricity sectors
Malaysia's Industrial Production Index (IPI) showed signs of recovery in July 2023, growing by 0.7% year-on-year (y-o-y) after a contraction of 2.2 percent in June. According to the Department of Statistics Malaysia (DoSM) the improvement was driven by the mining and electricity sectors, which saw growth of 4.2% and 1.5%, respectively. However, the manufacturing sector continued to decline but at a slower rate of 0.2%. On a month-on-month basis, the IPI declined by 1.8% in July, contrasting with the 2.2% growth seen in June. Domestic-oriented industries within manufacturing, such as motor vehicles and food processing, supported manufacturing output. Export-oriented industries remained on a downward trend, influenced by a drop in exports.
Malaysia's 2Q23 earnings: Navigating through mixed signals
Malaysia's corporate landscape in the second quarter of 2023 (2Q23) has been marked by mixed earnings results. While some sectors showed signs of improvement, others faced challenges amid a backdrop of external uncertainties and domestic factors. PublicInvest Research in a report noted that while there were some improvements compared to the previous quarter, a noticeable number of disappointments persisted, even after presumably drastic earnings cuts. The sectors that faced the most challenges included plantations, technology, power and oil and gas (O&G). Financial institutions, however, surprised on the upside.
RAM Ratings expects Malaysia's economy to grow at 4.5-5.5% in 2024
RAM Rating Services Bhd (RAM Ratings) expects Malaysia’s economy to record a positive growth of 4.5 per cent to 5.5 per cent in 2024 as the labour market remains robust, powering domestic demand. Recent data indicates tentative signs of the current electrical and electronic downturn bottoming out, potentially lifting exports next year, it said in a statement following the release of its Economic Update 2023 report. "The resolution of labour shortage issues could provide additional impetus to the growth of laggard sectors like agriculture and construction.
FMM: Manufacturing sector to slow further 1H23, cautious about rest of the year
The Federation of Malaysian Manufacturers (FMM) said the country's manufacturing sector slowed down further in the first half of 2023 (1H2023) and with the global economy tilted towards the downside, the sector's outlook for the 2H2023 remains cautious.
Stocks to Watch
$CIMB(1023.MY$ : CIMB Group Holdings Bhd has raised its sustainable finance target to RM100 billion by 2024, marking a substantial increase from its earlier target of RM60 billion set in 2022 and an initial goal of RM30 billion set in 2021. Its chief executive officer Datuk Abdul Rahman Ahmad said the group is raising its target given that it had surpassed its previous target, having mobilised close to RM70 billion in sustainable finance currently.
$KLK(2445.MY$ : Kuala Lumpur Kepong Bhd (KLK) has entered into a letter of agreement with Boustead Holdings Bhd (BHB) and the Armed Forces Fund Board (LTAT) to agree for the cut-off date for a strategic collaboration agreement to be Sept 22, or such other date as may be agreed in writing between KLK, BHB and LTAT.
$UEMS(5148.MY$ : UEM Sunrise Bhd is disposing of a 4.01-acre parcel of land in Kiara Bay, Kuala Lumpur for RM85 million to repay its debt obligations and fund its working capital for new product launches. UEM’s indirect unit Mega Legacy (M) Sdn Bhd (MLSB) is selling the land to Pembinaan Kery Sdn Bhd (PKSB), a unit of Melati Ehsan Holdings Bhd. MLSB has also entered into a development rights agreement with PKSB to develop the land at a development rights value of at least RM93.5 million. The deal is deemed a related party transaction, as Melati Ehsan's executive chairman and director Tan Sri Yap Suan Chee also holds an indirect stake of 50% in MLSB through Mega Legacy Equity Sdn Bhd.
$MAGNI(7087.MY$ : Magni-Tech Industries Bhd's net profit jumped 36.2% to RM32.73 million in the first quarter ended July 31, 2023 or 1QFY2024 from RM24.03 million a year earlier, on the back of a decline in operating expenses, higher investment income and foreign exchange gains. The stronger earnings were achieved despite quarterly revenue slipping 4.84% to RM324.38 million from RM340.91 million a year earlier, mainly due to lower sale orders received. The group declared a single tier interim dividend of 2.8 sen per share, to be paid on Oct 12.
$ARTRONIQ(0038.MY$ : Artroniq Bhd is going to distribute electric motor products for Indonesian firm PT Terang Dunia Internusa. It has, through its wholly owned Artroniq Itech Sdn Bhd (AiTech), inked a one-year distribution agreement with PT Terang. Under the agreement, AiTech will be appointed as distributor of PT Terang's products, which AiTech will buy from PT Terang in "completely knocked down" form and be assembled back at AiTech's factory. PT Terang, based in Kawasan Industri Branta Mulia in Desa Tarikolot, Bogor, in Indonesia, is primarily involved in the manufacturing of electric motors and bicycles.
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
104292782 ida : w
莫忘初忠 : cymbal