Malaysia Morning Wrap | Maybank Considers Strategic Options for Etiqa Including Buyout of Ageas' Stake
Good morning mooers! Here are things you need to know about today's market:
● US Markets Falter as Treasury Yields Climb and Election Excitement Dwindles
● Malaysia's IPO Surge Reflects Investor Confidence in Local Bourse
● Mida Identifies 12 Egyptian Companies Interested in Investing in Malaysia
● Stocks to Watch: Maybank, Hartalega, Heineken Malaysia, etc.
- Moomoo News MY
Wall Street Summary
Major U.S. benchmarks ended the trading session lower, driven by concerns over rising bond yields and diminishing post-election momentum. The $Dow Jones Industrial Average (.DJI.US)$ was off 382 points (0.90%) to close at 43,910. The $S&P 500 Index (.SPX.US)$ closed down 0.29% and the $Nasdaq Composite Index (.IXIC.US)$ was off 0.09%. Additionally, the economic challenges faced by China and Europe are intensifying. Meanwhile, commodity prices and resource stocks experienced a continued decline overnight.
Breaking News
Malaysia's IPO Surge Reflects Investor Confidence in Local Bourse
Bursa Malaysia Bhd is experiencing a notable surge in initial public offerings (IPOs) as 2024 concludes, with 44 IPOs signaling heightened investor confidence and establishing Malaysia as a top IPO destination in Southeast Asia. Contributing to this robust activity are Malaysia's stable economic and political conditions and its strong global standing post-major international events. Outperforming regional markets, Malaysia has raised about US$450 million in the first half of the year, accounting for a significant portion of Southeast Asia's IPO proceeds. This resurgence in the Malaysian market is driven by optimism in key sectors like construction, manufacturing, and healthcare, supported by favorable government policies and initiatives.
Mida Identifies 12 Egyptian Companies Interested in Investing in Malaysia
During Prime Minister Datuk Seri Anwar Ibrahim's official visit to Egypt, the Malaysian Investment Development Authority (Mida) identified 12 Egyptian manufacturing companies keen on investing in Malaysia. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz announced at a roundtable in Cairo that these companies are exploring opportunities in the pharmaceutical, medical device, aerospace, and petrochemical sectors. The meeting, which included 60 industry leaders, highlighted potential exports worth RM4.8 billion and interest in various Malaysian products and services, reflecting strong trade prospects under Malaysia's New Industrial Master Plan 2030.
Stocks to Watch
$MAYBANK (1155.MY)$ is exploring strategic options to enhance the value of its insurance arm, Etiqa. Options under consideration include buying out Ageas SA’s 31% minority stake or replacing it with another investor, potentially valuing Etiqa at around US$4 billion (RM17.72 billion). Maybank is also contemplating renegotiating its bancassurance agreements to improve insurance product distribution. These deliberations are ongoing, and no final decisions have been made, with the possibility that Maybank may decide against any transaction.
$HARTA (5168.MY)$ experienced a significant 69% decline in net profit in the second quarter of fiscal year 2025, recording RM8.63 million, influenced by reduced export revenue due to a strengthening ringgit and increased costs for raw materials. Without deferred tax income from capital investment incentives for domestic expansion, the company would have faced a pre-tax loss of RM47.45 million. Despite these challenges, revenue rose by 44% year-on-year to RM652.07 million, driven by higher sales volume. Hartalega also announced a first interim dividend of 0.56 sen per share, payable on December 11. The company highlighted persistent industry headwinds, including global oversupply and ongoing supply-chain adjustments.
$HEIM (3255.MY)$ reported a 28.6% increase in net profit to RM112.29 million in the third quarter of FY2024, up from RM87.33 million the previous year, driven by higher revenue and effective cost management. Revenue for the quarter grew by 3.2% to RM618.99 million. No dividend was declared for this period. For the first nine months of FY2024, net profit rose by 13.3% to RM325.89 million, with revenue increasing by 3.4% to RM1.97 billion, boosted by a strong Chinese New Year campaign.
$KGB (0151.MY)$ achieved a 3.94% increase in its third-quarter net profit, rising to RM32.92 million from RM31.67 million a year earlier. This profit boost was attributed to a higher gross profit margin driven by strategic revenue composition, a favorable project mix, and increased contributions from the industrial gases division. This occurred despite a 23.52% decrease in quarterly revenue to RM307.31 million, mainly due to major projects in Singapore and Malaysia nearing completion. The company also declared a third interim dividend of two sen per share, payable on December 23.
$TNLOGIS (8397.MY)$ has declared a share dividend, offering one treasury share for every 40 existing shares held by its shareholders. This distribution will involve up to 12.9 million treasury shares. The ex-date for the dividend is set for November 26, and the shares will be credited to shareholders' accounts on December 18.
$FAJAR (7047.MY)$ has decided to pull out from the Residensi Cemara affordable housing project in Putrajaya, which has an estimated gross development value of RM192 million. The company cited a change in project requirements as the reason for deeming the project "not sustainable," leading to their withdrawal.
$PGLOBE (3611.MY)$ has acquired rights to develop a residential project on 67.42 acres in Iskandar Puteri, Johor, estimated at RM733.12 million in gross development value. The agreement with Iskandar Capital Sdn Bhd allows for the development of two freehold parcels, located near Jalan Ismail Sultan and Lebuh Kota Iskandar. This project, marking the company's entry into the landed property sector, will consist of 324 semi-detached houses, two bungalows, and 14 bungalow plots.
$ATLAN (7048.MY)$'s subsidiary, Duty Free International Ltd (DFIL), listed on the Singapore Exchange, has expressed dissatisfaction with the RM69.9 million compensation offered for two plots of land in Bukit Kayu Hitam, Kedah. These lands, owned by the 75.53%-owned unit of Atlan Holdings, have been compulsorily acquired by Malaysia's Ministry of Home Affairs (KDN) to facilitate a road construction project. The project aims to establish a new road alignment connecting the Bukit Kayu Hitam ICQS Complex in Kedah to the CIQ Sadao facility in Thailand. DFIL is currently assessing its options in light of the compensation offered.
$MCEHLDG (7004.MY)$ has announced plans to raise up to RM26.5 million through a private placement of shares. The funds raised will be used to partially finance the construction of a new manufacturing factory in Serendah and to support other projects the company has secured. The private placement will involve issuing up to 18.53 million new MCE shares, which represents 10% of its total issued shares. The issue price of the shares will be determined at a later date.
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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