MY Morning Wrap | Palm Planters Hit by Weak Demand
Good morning mooers! Here are things you need to know about today's market:
●U.S. stocks fell, extending August declines spurred in part by higher yields.
●Palm planters hit by weak demand
●Vehicle sales rise 28% year-on-year in July
●More developers to launch new projects in H2
●Stocks to watch: Bintulu Port
-moomoo News MY
Wall Street Summary
Federal Reserve officials still see inflation risks and the potential need for higher interest rates, according to meeting minutes released this week.
Stocks fell, extending August declines spurred in part by higher yields. $S&P 500 Index(.SPX.US$ and $Dow Jones Industrial Average(.DJI.US$ both shed 0.8%, while the $Nasdaq Composite Index(.IXIC.US$ was 1.2% lower. The tech-heavy Nasdaq, sensitive to higher rates, is down 7.2% this month.
Breaking News
Palm planters hit by weak demand
Plantation companies will likely register a mixed performance in their upcoming second-quarter results (2Q23) starting Aug 23, according to Hong Leong Investment Bank (HLIB) Research. This will occur on the back of mixed fresh fruit bunch (FFB) output growth and slightly lower crude palm oil (CPO) prices, it said. Despite the second quarter being a seasonally higher productivity quarter as witnessed by a 6.1% quarter-on-quarter (q-o-q) increase in Malaysia’s CPO production, HLIB Research said three out of six planters under its coverage clocked in lower FFB output in 2Q23.
Vehicle sales rise 28% year-on-year in July
Total vehicle sales rose 28% to 63,676 units in July from 49,934 units last year, due to normalisation of the automotive supply chains and fulfilment of bookings received for new model launches recently. In a statement, the Malaysian Automotive Association (MAA) said total industry volume (TIV) for July 2023 was 1.7% higher than June 2023 (which was at 62,593 units), as vehicle sales continued with upward momentum. Of the number of vehicles sold last month, 57,939 consisted of passenger cars while 5,737 units consisted of commercial vehicles. Comparatively, a total of 44,574 passenger cars and 5,360 commercial vehicles were sold in the same month last year. Year-to-date July, total vehicle sales rose to 429,807 units from 381,680 units in the previous corresponding period. Separately, the MAA said total industry production recorded in July 2023 stood at 66,862 units, which was much higher compared with 58,051 units in June 2023. On the outlook for August, the MAA said vehicle sales are expected to be slightly higher than July 2023's level.
Total vehicle sales rose 28% to 63,676 units in July from 49,934 units last year, due to normalisation of the automotive supply chains and fulfilment of bookings received for new model launches recently. In a statement, the Malaysian Automotive Association (MAA) said total industry volume (TIV) for July 2023 was 1.7% higher than June 2023 (which was at 62,593 units), as vehicle sales continued with upward momentum. Of the number of vehicles sold last month, 57,939 consisted of passenger cars while 5,737 units consisted of commercial vehicles. Comparatively, a total of 44,574 passenger cars and 5,360 commercial vehicles were sold in the same month last year. Year-to-date July, total vehicle sales rose to 429,807 units from 381,680 units in the previous corresponding period. Separately, the MAA said total industry production recorded in July 2023 stood at 66,862 units, which was much higher compared with 58,051 units in June 2023. On the outlook for August, the MAA said vehicle sales are expected to be slightly higher than July 2023's level.
More developers to launch new projects in H2
Although the local property sector remains on a steady footing, new growth catalysts are required to give it a shot in the arm, say industry insiders. A Real Estate and Housing Developers’ Association Malaysia (Rehda) survey revealed that respondents (property developers) had a “neutral” view of the business and property industry outlook for the second half of 2023 (2H23), with increased optimism for 1H24. Rehda president Datuk N.K. Tong said the end of Covid-19 pandemic and the conclusion of the six-state elections could spur fresh optimism in the property market.
Stocks to Watch
$BIPORT(5032.MY$ : Bintulu Port Holdings Bhd has secured an extension from the government to continue operating the Bintulu Port, Sarawak’s main port for liquefied natural gas, for 12 months. The group, via its wholly-owned Bintulu Port Sdn Bhd (BPSB), has inked a second interim agreement with the Ministry of Transport and Bintulu Port Authority to continue operating the port from July 1, 2023 to June 30, 2024. This follows the initial notification in April on the Cabinet’s approval for BPSB to continue operating the port for an interim period of 12 months.
$SUNREIT(5176.MY$ : Sunway Real Estate Investment Trust (Sunway REIT)’s net property income for the second quarter ended June 30, 2023 (2QFY2023) increased by 8.7% to RM116.18 million from RM106.89 million a year earlier, primarily driven by its hotel, retail, services as well as industrial and other segments. Quarterly revenue grew 15.2% to RM166.53 million from RM144.51 million. It declared an interim income distribution of 4.62 sen to be paid on Sept 15.
$DAYANG(5141.MY$ : Integrated oil and gas service provider Dayang Enterprise Holdings Bhd's Pan Malaysia contract with Hibiscus Oil and Gas Malaysia Ltd to provide maintenance, construction and modification services has been extended by another one year and five months until Dec 31, 2024. The original contract duration was for a period of five years expiring in July this year, with an option to extend for a one-year period. Dayang said its wholly-owned subsidiary Dayang Enterprise Sdn Bhd had agreed to an amendment and extension of the provision of the Pan Malaysia maintenance, construction and modification contract with Hibiscus Oil and Gas. No contract value was given, as the actual value would ultimately depend on work orders being received by Dayang.
$MAGNUM(3859.MY$ : Magnum Bhd’s net profit jumped 65.29% to RM43.64 million for 2QFY2023 from RM26.4 million a year earlier, mainly contributed by the group’s gaming division. Quarterly revenue grew 11.4% to RM537.11 million from RM482.14 million in 2QFY2022, also driven by the gaming division, said the numbers forecast operator.
$BJASSET(3239.MY$ : Berjaya Assets Bhd (BAssets) narrowed its net losses to RM14.54 million or 0.57 sen per share in the fourth quarter ended June 30, 2023 (4QFY2023), from RM30.39 million or 1.19 per share a year ago, after higher revenue more than offset an impairment of assets and unfavourable fair value adjustment. BAssets said quarterly revenue rose some 10% to RM57.07 million from RM51.91 million due to higher rental income and jetty income reported by its property investment segment, and higher sales of theme park tickets reported by its hotel and recreation business segments.
$PUNCAK(6807.MY$ : Puncak Niaga Holdings Bhd is selling three parcels of leasehold land in Selangor for RM306.07 million cash, to monetise its assets as part of the group's "broader strategic thrust of sustainable value creation" for its shareholders. The group is expected to record a net loss of about RM22.4 million from the disposal, which requires the approval of shareholders as well as the state authority's approval for the transfer of the land's ownership. Puncak Niaga and its wholly-owned Puncak Niaga Management Services Sdn Bhd have entered into three conditional sale and purchase agreements for the disposal of the plots, which have a combined size of 672,089 sq m.
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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