Malaysia Morning Wrap | Sime Darby Subsidiary Launches Fifth Sukuk Murabahah Tranche for RM200 Million Fundraising

Moomoo News MY joined discussion · Dec 16, 2024 08:11

Good morning mooers! Here are things you need to know about today's market:

● The Market Was Mixed Friday, With a Tech Climb Bringing the Nasdaq to Fresh Highs

● Works Ministry Anticipates That Construction Expenditure Will Reach RM200 Billion in 2025

● Tight Supply to Propel Rubber Prices Higher This Week

● Stocks to Watch: TM, SIME, YINSON, etc

- Moomoo News MY

Malaysia Morning Wrap | Sime Darby Subsidiary Launches Fifth Sukuk Murabahah Tranche for RM200 Million Fundraising

Wall Street Summary

The market was mixed Friday, with a tech climb bringing the Nasdaq to fresh highs. The S&P 500 was dead flat Friday, while the Dow fell. Past 4 pm ET the $S&P 500 Index (.SPX.US)$ closed flat the $Dow Jones Industrial Average (.DJI.US)$ fell 0.20%, and the $Nasdaq Composite Index (.IXIC.US)$ climbed 0.12%.

Breaking News

Works Ministry Anticipates That Construction Expenditure Will Reach RM200 Billion in 2025

Works Ministry projects RM200 billion in spending for Malaysia's construction sector next year, covering government entities, government-linked companies (GLCs), government-linked investment companies (GLICs), and private sectors. This expenditure will fund infrastructure development and maintenance, including roads, highways, bridges, and various facility repairs. The allocation includes RM88 billion from the government budget, RM32 billion designated for GLCs and GLICs projects, and RM80 billion from private investments. Deputy Minister Ahmad Maslan highlighted that these developments will prioritize public benefits, particularly in remote areas. To achieve this ambitious target, there is a critical need to increase the number of skilled workers and lessen dependency on foreign labor. The Malaysian Building Academy (ABM) Southern Region has already trained 70,000 skilled workers and aims to train over 2,000 additional youths next year, enhancing local expertise and contractor capacity.

Tight Supply to Propel Rubber Prices Higher This Week

The local rubber market is poised to rise, driven by low latex yields and tight supply due to incessant rainfall in producing regions, according to industry expert Denis Low. Thailand anticipates more rain and cooler temperatures, which will further impact production. The Malaysian Rubber Glove Manufacturers Association (MARGMA) notes that a weakening ringgit and supportive crude oil prices could boost market sentiment. Additionally, the launch of the Malaysian Sustainable Natural Rubber (MSNR) initiative for EU-compliant exports underscores Malaysia’s commitment to sustainability. However, weaker global economic conditions and tepid demand from key sectors may cap price gains.

Stocks to Watch

Lotte Chemical Titan Holdings Bhd $LCTITAN (5284.MY)$ has announced a temporary halt in operations at its Naphtha Cracker Number 1 plant in Pasir Gudang Complex, Johor, starting December 15, due to a sustained downturn in the petrochemical sector. The company plans to resume operations when market conditions improve. The plant has an annual capacity of 430,000 tonnes.

Yinson Holdings Bhd $YINSON (7293.MY)$ reported a 19.4% drop in net profit to RM200 million in 3QFY2025 compared to RM248 million in the previous year, due to decreased revenue and increased administrative and finance costs. Earnings per share decreased from 7.3 sen to 6.2 sen. The company also declared a third interim dividend of one sen per share. Chai Jia Jun, the chief strategy officer, will assume the role of group chief financial officer in addition to his current position, following the resignation of Guillaume François Jest.

Telekom Malaysia $TM (4863.MY)$ has introduced a new cloud computing service, GPU-as-a-Service (GPUaaS), which allows users to rent high-performance GPU resources over the internet on a pay-as-you-go basis. This first-of-its-kind service in Malaysia is fully hosted within the country and aims to reduce the need for large capital investments by providing scalable, on-demand access to advanced resources.

T7 Global Bhd $T7GLOBAL (7228.MY)$ has been awarded a Letter of Award from Petronas Carigali Sdn Bhd for the provision of maintenance, construction, modification, and hook-up commissioning services across Malaysia. The contract, awarded to its subsidiary Tanjung Offshore Services Sdn Bhd, is for a five-year period with options for extensions.

Datasonic Group Bhd $NEXG (5216.MY)$ shareholders have rejected a proposal to relax the requirement for directors' written resolutions at an extraordinary general meeting. Another rejected resolution involved providing ESOS options to a newly-appointed independent non-executive director. However, ESOS options for two other directors were approved.

Exsim Hospitality Bhd $EXSIMHB (1287.MY)$ , formerly Pan Malaysia Holdings Bhd, has been awarded a RM20.98 million sub-contract for the renovation of 62 office units on Old Klang Road. The sub-contract, awarded to its subsidiary Exsim Concepto Sdn Bhd, is expected to be completed in three months and will positively impact the company's net assets, earnings, and gearing.

Sime Darby Bhd $SIME (4197.MY)$ has successfully issued the fifth tranche of its sukuk murabahah programme, raising RM200 million. The sukuk, issued by Sime Darby Enterprise Sdn Bhd, will mature in 2030. To date, Sime Darby has raised RM4.5 billion under this programme.

Carzo Holdings Bhd's $CARZO (03048.MY)$ subsidiary, Carzo Sdn Bhd, has been served with legal documents by its fruit supplier, Everfresh Fruits Import Sdn Bhd, regarding payment terms for supplied fruits. The dispute was filed in the Kuala Lumpur Magistrate Court.

The former CEO of GIIB Holdings Bhd $GIIB (7192.MY)$ , Tai Boon Wee, who was charged with forgery related to the misrepresentation of the company's financial report, has been discharged after the prosecution withdrew the charge. The company considers the matter closed and reaffirms its commitment to integrity, trust, and respect.

Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The EDGE

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