MY Morning Wrap | Malaysia's Palm Oil Stocks Decline in March

The $S&P 500 Index(.SPX.US)$ and $Dow Jones Industrial Average(.DJI.US)$ opened cautiously green before falling 0.58% and 0.12%, respectively, while the $Nasdaq Composite Index(.IXIC.US)$ fell 1.15% after treasury yield pullbacks failed to keep stocks afloat. ASML, a semiconductor chip manufacturing equipment maker, reported a significant drop in earnings, warning of the semiconductor industry's future. Preliminary closing figures at 4 PM EST showed the decline in the indexes.

$AFFIN(5185.MY)$: Affin Bank announced that the Employees Provident Fund (EPF) is no longer a substantial shareholder after disposing of three million shares in the banking group on April 12. The value of the transaction was not specified in the bourse filing, and it is unknown how many shares the EPF still holds. As of February 29, the EPF held 121.91 million shares in the bank, which accounted for a 5.195% stake. The EPF had been gradually reducing its stake in Affin Bank from January until the end of February, selling a total of 16.46 million shares during that period.

$HTPADU(5028.MY)$: HeiTech Padu, an e-government services provider, intends to raise up to RM22.98 million through a private placement. The company stated that the proceeds would primarily be used for working capital. The placement consists of 10.12 million shares, which represents 10% of the company's enlarged share base. The indicative issue price is set at RM2.27 per share, representing a discount of 24.4 sen, or 9.71%, to the five-day volume-weighted average price of HeiTech Padu shares up to April 17 of RM2.51, for illustrative purposes.

$IGBREIT(5227.MY)$: IGB Real Estate Investment Trust (IGB REIT) reported a 4.79% increase in its net property income (NPI) for the first quarter ended March 31, 2024, to RM124.24 million from RM118.55 million a year earlier, mainly due to higher rental income. Revenue for the quarter stood at RM162.56 million, a 5.14% increase from RM154.62 million in the same period last year. The company expects the retail sector to record a 4% growth for the full year of 2024. Meanwhile, its sister company, IGB Commercial REIT, reported an NPI of RM34.23 million for 1QFY2024, a 5.68% increase from the RM32.39 million a year ago, mainly due to higher maintenance costs in the preceding quarter. The revenue also increased by 5.14% to RM162.56 million from RM154.62 million.

$KEYFIELD(5321.MY)$: Oil and gas services firm, Keyfield International Bhd, which is preparing to list on Bursa Malaysia's Main Market, reported a 72.43% surge in its fourth-quarter net profit, driven by higher vessel utilisation and charter rates. The net profit for 4Q2023 was RM22.12 million, compared with RM12.83 million in 4QFY2022. Revenue grew 76.82% year-on-year to RM119.53 million from RM67.6 million. The company expects supply conditions for offshore vessels to remain tight in 2024 due to a shortage of suitable vessels to support offshore activities.

$LBS(5789.MY)$: LBS Bina Group Bhd has announced a total dividend of 2.7 sen per share for FY2023, consisting of a first interim dividend of 1.35 sen and a final dividend of 1.35 sen. The interim dividend will be paid on July 16, while the final dividend will be paid on September 2. The 2.7 sen payout for FY2023 is higher than the 2.45 sen per share paid for FY2022.

$MENANG(1694.MY)$: Property developer Menang Corp (M) Bhd has entered into an agreement to purchase a 20% stake in an Indonesian healthcare joint venture (JV) for RM4 million. The company has also agreed to subscribe for up to 30 million preference shares worth RM30 million in the JV, Alpro Menang Ventures Sdn Bhd. The remaining 80% of the JV will be held by Alpro Alliance Sdn Bhd (ALA), a pharmaceutical product retailer.

$EFORCE(0065.MY)$: Chinese national Chen Hui has sold 30 million shares, representing a 4.9% stake, in Excel Force MSC Bhd for RM10.2 million through Hong Kong-based company Honest Winner Ltd via a direct business transaction. As a result, Chen Hui is no longer a substantial shareholder of the company. His remaining stake in the company is now 3.4%, or 20.5 million shares. Chen had become a substantial shareholder on February 29, following Excel Force's acquisition of Orca Capital Holdings Ltd for RM18.15 million in a share sale agreement.