MY CLOSING BELL REVIEWS | KLCI ONE STEP AWAY TO 1460 POINTS

Asian regional stock markets generally closed higher on Friday, and the FTSE Composite Index was only one step away from 1,460 points.

On the peripheral side, the Japanese and Hong Kong stock markets rose by more than 1%, leading the Asian regional stock market.

The daily trading volume was 4 billion shares, with a transaction value of RM4.3 billion.

The FTSE Malaysia All Stock Index closed at 10771.17 points, starting at 70.71 points.

Individual stocks rose and fell less across the board, with a total of 550 rising stocks, 387 falling stocks, 428 with no ups or downs, and 1008 without trading.

Meanwhile, USD 5.1 was cashed out in ringgit in the afternoon, at the level of 4.685.

Analysts predict that the government may add a series of indirect consumption taxes to the 2024 budget to be announced. Although analysts don't think the casino tax will be raised, some indirect consumption taxes, such as the “luxury tax,” may impact the casino industry.

Dahua Jixian Research said today in the “2024 Budget Preview” research report that the government may introduce new policies to achieve the two major goals of increasing national taxes and ensuring social security, similar to Singapore's current framework.

“Despite this, we have ruled out the possibility that the government will raise the gaming tax because China's casino tax is already one of the highest in the region, not to mention that the casino tax was raised in 2018.”

As for the lottery operators, the number of special lottery days is unlikely to return to 22 days (currently 8 days), as the Prime Minister announced a reduction in the number of special lottery days on December 22 last year.

Analysts further predict that the government will add a series of indirect consumption taxes, such as a “luxury tax,” and “discretionary” targeted gasoline subsidies, that is, to minimize the number of people affected.

Analysts pointed out that this is similar to the electricity bill increase pattern in the second half of 2023, and only 1% of household users with the highest electricity usage will be affected.

Analysts believe that the new indirect taxes may generally slow down consumption trends.

In addition, a capital gains tax on unlisted companies will also be introduced, and the consumption tax, which has sparked widespread discussion, may also be restarted.

On the other hand, analysts also predict that the 2024 budget will be in line with the new industrial blueprint 2030 (NIMP2030) and the Iskandar 2.0 plan, and will be more friendly to the market.

The budget anticipates adopting a number of measures to create positive market value, including easing the Malaysia Second Home Plan and incentives for the New Industrial Blueprint 2030 and Iskandar 2.0 Plan to attract foreign capital inflows.

At the same time, it will also implement an environmental, social and regulatory (ESG) agenda and improve fiscal discipline.

Analysts expect that if the new industrial blueprint 2030 proposed by the Prime Minister is followed, electronics and electricity (E&E), which accounts for 40% of China's exports, will be a big winner. The blueprint will also consolidate leading regional enterprises and a catalyst for new industries.

Furthermore, various measures, including special economic zones and the Malaysia Second Home Plan, will drive the development of Johor and benefit industrial companies developing projects in Johor.

In addition to the budget, the Iskandar 2.0 investment theme also includes development projects along the MRT system route. The enactment of several major programs, such as MRT3 (MRT3), will benefit the construction and building materials sector.

According to macroeconomic forecasts, analysts expect the current budget to narrow the fiscal deficit to 4.2%.

In addition to greatly boosting the manufacturing industry and further advancing the sustainability agenda, it has also greatly taken care of people's welfare, such as implementing a progressive salary model to help middle-income cohort and precise subsidies to cope with the rising cost of living.

Overall, the 2024 Budget is believed to be market-friendly, that is, pro-economic growth, pro-FDI, and pro-ESG.

Societe Generale Investment Bank, which was publicly condemned by the Malaysian Stock Exchange, promised to take this matter seriously, and while carrying out its duties, it will meet regulatory requirements with higher standards.

The Malaysian Exchange publicly denounced Societe Generale Investment Bank yesterday, alleging that the latter, as the main adviser and sponsor, violated GEM listing guidelines and issued a RM0.35 million fine for this.

The bank issued a statement on Friday stressing that it will take this accusation seriously and will review and strengthen the company's due diligence processes and procedures.

“We are also working with external consultants to ensure that Societe Generale Investment Bank can continue to adjust its operating methods to meet the needs of the market.”

“Improvements in due diligence processes and procedures, combined with strong commitment and collaboration with clients and relevant authorities, will help improve the quality and standards of investigations.”

Managing Director and CEO Gannis Sabarana said, “We guarantee that the bank will continue to adhere to a higher degree of due diligence and comply with regulatory requirements in carrying out its duties.”

On Thursday, the Malaysian Stock Exchange denounced Societe Generale Investment Bank for violating GEM listing guidelines, including failure to adopt and conduct proper due diligence, and failure to promptly notify or submit major developments relating to the applicant's business, operations, future plans and prospects to the Malaysia Exchange.

Zimu has been operating at this factory since 1963.

Huang Kunjing, marketing director of UEM Sunshine, said in an interview with the “New Straits Times” that after the factory was demolished, the site was used to develop a comprehensive project for residential buildings and retail stores.

According to Hong Kong media reports, Xie Funian recently attended the 8th “Belt and Road Summit” held in Hong Kong.

In an exclusive interview with local media, he said that the Guangdong-Hong Kong-Macao Greater Bay Area plays an important role in China's economic development, providing great potential for companies, universities, investors and entrepreneurs in ASEAN countries.

He looks forward to cooperating with the Guangdong-Hong Kong-Macao Greater Bay Area to jointly advance the “Belt and Road” construction in the future.

Sunway Group is one of the largest group companies in Malaysia. Its core business involves real estate, education, medical care, hotels, etc.

According to the statement, the buyer for the industry in Johor Bahru, including two separate plants and other ancillary buildings, is Ferrotec Power Semiconductors.

The company will use the proceeds of divestment to explore business and investment opportunities, as well as capital expenses and working capital, purchase raw materials, and pay administrative expenses.

The board also stated that the divestment of the land gave an opportunity to release the value of the land; furthermore, according to the appraiser's valuation, the property was worth RM43 million, and the company sold the land at a premium of RM5 million or 11.63%.