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-- 9.080 MY Closing Bell Reviews | KLCI CLOSED BELOW 1450 POINTS AFTER FED MEETING MINUTES
The overnight hawkish minutes from the Federal Reserve shook global stock markets, and today the Malaysian stock market slumped across the board, with only the construction, REIT, industrial, and medical care sectors maintaining their upward momentum.
$FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$This morning, the market started with a slight decline; but after lunch, it went south across the board, even breaking through the 1450 resistance level.
At the close of the 5 p.m. market, the FTSE Bursa Malaysia KLCI closed at 1447.98 points, down 15.53 points or 1.06%.
The total trading volume for the day was 4.3 billion 35.38 million 1500 shares, with a trading value of 2.5 billion 61.39 million 6349 ringgit.
The FTSE Bursa Malaysia All Shares Index closed at 10679.57 points, down 90.29 points.
355 stocks rose, 607 stocks fell, 429 stocks remained unchanged, and 949 stocks had no trading.
At 5 p.m., 1 US dollar was exchanged for 4.6523 Malaysian Ringgit.
source: Nanyang Siang Pau, Klse Pulse
Focus on
Malaysia's automobile sales in July increased by 28%.
MAA: There will be even more in August.
In July, Malaysia's automobile sales reached 0.06 million 3676 units, a sharp increase of 27.52% compared to the same period last year.
In July, automobile sales reached 0.06 million 2593 units, an increase of 1.7% compared to June. The Malaysian Automotive Association (MAA) believes that this good performance is attributed to the normalization of the automobile supply chain and the completion of recent orders for new car models.
The guild is even more optimistic that due to the successive launch of new car models in the automotive industry and the implementation of National Day promotions, the total car sales volume is expected to be slightly higher in August than in July.
According to the data published by MAA today, the total car sales volume from the beginning of the year to now has reached 0.42 million 9807 units, an increase of 12.61% compared to 0.38 million 1680 units last year.
In terms of production, 0.06 million 6862 cars were produced in July, an increase of 28.43% compared to the same period last year.
From the beginning of the year to now, the total car production has reached 0.42 million 9397 vehicles, a 16% increase compared to 0.36 million 9994 vehicles last year.
Building costs continue to rise REHDA: house prices may rise.
Facing the continued rise in costs and the challenging business environment, the Real Estate and Housing Developers' Association Malaysia (REHDA) believes that developers will have to pass on the costs and that house prices may rise.
Our mission and goal is to build affordable, quality homes in a timely manner. Therefore, when costs rise, we must pass them on, otherwise we cannot continue.
REHDA President Datuk Soam Heng Choon said this at the media briefing on the industry survey for the first half of 2023, as well as the market outlook for the second half of 2023 and 2024.
He pointed out that most developers expect average construction costs to rise by 15% in the second half of the year.
According to the survey results, three-quarters of developers have felt the increase in costs in the first half of the year, with an increase of about 15%, among which 87% have felt the price increase of building materials.
In particular, the prices of cement, concrete, and sand have recorded double-digit growth rates of 21%, 13%, and 11% respectively.
As for measures to cope with the increased cost of building materials, 51% of developers surveyed believe that the cost can be passed on by increasing property prices.
However, REHDA Deputy Chairman Datuk Ho Han Sang added that developers cannot arbitrarily raise prices, as they need to consider various factors and also the influence of banks on selling prices.
Because financing approvals are very strict, housing prices cannot be arbitrarily raised. They need to be conducive to banks providing loan support to homebuyers.
According to the survey, the main reasons for the unsold completed properties include high property prices, failed loan applications, and unopened reserved units for indigenous people.
The outlook for next year is relatively optimistic.
Looking ahead, Tong Yinkun said that real estate developers have a neutral view on the domestic economic situation and industry market prospects for the next 12 months, but a more optimistic attitude for the first half of next year.
"As for the outlook for next year, although it is difficult to predict the future, what we can see is that the pandemic is over, which may make us more optimistic, and there are no surprises from the state elections."
He hopes that after these disruptions are reduced, everyone will focus on moving forward, and hopes that states and the federal government will focus on the development of the people, industries, and overall economy.
Furthermore, he mentioned that government initiatives, such as the "Bright Prosperous Malaysia" economic framework, will also have a positive effect on stimulating industry market sentiment.
He said that the government's efforts to benefit the people will boost market sentiment, and the financing plans of the Housing Credit Guarantee Corporation (SJKP) are expected to support the public in purchasing properties.
He stated that 53% of real estate developers plan to launch new projects in the second half of the year. Most of the planned properties are priced between 150,000 to 300,000 ringgit, mainly located in Kedah, Perak, Malacca, Pahang, Penang, and Perak.
Strong property sales in the first half of the year
Looking back at the first half of this year, our country's property market is in a positive recovery state, with significant growth in new launches and unit sales compared to the second half of last year.
According to the survey data from 148 members, a total of 0.01 million 4392 new units were launched in the first half of the year, a 50% increase.
Tong Yinkun stated that the majority of the new units are apartments (7183), followed by double and triple-storey terrace houses (3729), and then serviced residences (1223).
At the same time, he stated that sales in the first half of the year doubled, totaling 0.01 million 1273 units, of which 35% are newly launched units, compared to 5087 in the second half of last year.
"The apartment sales performed the best, selling a total of 3749, followed closely by 3688 serviced residences, and then double and triple-storey terrace houses with 2040."
He believes that the increase in project launches and sales is a positive signal that the industry market is gradually returning to normal.
"However, true recovery remains elusive because developers are still struggling to address unresolved challenges, such as rising material prices, cross-subsidies, and high compliance and utility costs."
Banks remain cautious in granting loans.
53% of the surveyed developers faced unsold properties in the first half of this year, with the most significant being units priced at over 1 million ringgit, accounting for 23%, followed by those priced between 0.7 million and 1 million ringgit, as well as those between 0.4 million and 0.5 million ringgit, each accounting for 20% respectively.
Among them, 47% of the unsold housing is within 12 months of age, while 31% is over 36 months old.
Developers believe that the main reasons for the unsold houses are failed loan applications (75%), non-release of indigenous reserved units (68%), and high house prices (51%).
He said that many loan applications may have been rejected due to the banks' cautious approach based on the current environment.
According to the survey, 84% of the developers have taken cost-cutting measures in response to the current economic situation. These measures include freezing recruitment, reducing benefits and allowances, reducing salaries, and adjusting delivery initiatives, such as rearranging launch plans, reducing the scale of launches, and postponing projects.
Stocks to watch
$SEACERA (7073.MY)$Today, the PN17 status was revoked, and the stock price soared in early trading, rising as much as 90%!
Yesterday, Bursa Malaysia announced the exemption for Southeast Asia Ceramics from the requirement to submit a PN17 restructuring plan under the listing regulations, and revoked the PN17 status of the stock this morning.
The stock soared to 39 cents at the opening today, a significant increase of 90.24% compared to yesterday's closing price of 20.5 cents!
The stock price retraced the gains, but as of the midday break, it still rose by 31.71%, or 6.5 cents, trading at 27 cents.
Southeast Asia Tiles was listed under PN17 in 2019 due to debt default, but the company's recent performance has improved. In the third quarter of the 2023 fiscal year ending in May, it recorded a net profit of 1.46 million ringgit.
As a result, the company applied for exemption from submitting a restructuring plan to the exchange in April and obtained approval yesterday.
$PESTECH (5219.MY)$After confirming the termination of the contract by Malaysia Airports yesterday, the stock price plummeted again today, dropping nearly 19% at one point.
By the midday break, Pestech International reported a price of 25.5 cents, equivalent to a drop of 3.5 cents or 12.07%. The stock hit a low of 23.5 cents in the morning session, marking a decline of 5.5 cents or 18.97%.
The terminated contract of Pestech International was the Kuala Lumpur International Airport Aerotrain contract received through its subsidiary Pestech Technology (PTSB) in December 2021, valued at 700.43 million ringgit.
According to a statement from Malaysia Airports, PTSB failed to fulfill its contractual obligations, severely impacting the project progress and posing a risk of project delivery delay, leading to the termination of the aforementioned contract.
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source: Nanyang Siang Pau, Klse Pulse
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