MY Closing Bell Reviews｜REGIONAL BRING THE LEADS, KLCI EXTENDED 5.17 POINTS

The Asian stock market was generally positive on Tuesday, and horse stocks also rose along with the market, but their increase was relatively limited.

On the periphery side, the Japanese stock market surged 1.2% throughout the day, making it the best-performing stock market in the Asian region.

The trading volume of horse stocks on Tuesday was 2.6 billion shares, with a transaction value of RM1.9 billion.

The FTSE Malaysia All Stock Index closed at 10692.88 points, starting at 33.82 points.

Investment sentiment in Malaysian stocks is also improving. Overall, there were 439 rising stocks, higher than 353 falling stocks, another 504 with no ups or downs, and 1,045 no trades.

Meanwhile, at 5:1 p.m., the US dollar was cashed out in ringgit to the level of 4.7373.

Fitch's BMI study maintains expectations for Malaysia's fiscal deficit, indicating that this year's deficit will be 4.9% of gross domestic product (GDP) and fall to 4.3% next year, in line with the government's forecast.

After a quick review of the latest 2024 budget, BMI indicated that the budget showed signs of continued fiscal consolidation.

“This budget also shows that the Malaysian government has taken a positive step on the way to achieve the mid-term target of a 3.5% deficit.”

Furthermore, BMI believes that the most important announcements in the new budget are the three tax-related policies, namely raising the sales and services tax (SST) to 8%, implementing a 5% to 10% luxury goods tax, and introducing a capital gains tax on equity transactions of unlisted companies.

“The government expects to receive an additional revenue of RM14.6 billion from these tax policy changes. Overall, government revenue is expected to rise by 1.5%, and increased taxes are expected to help offset the decline in non-tax revenue.”

In terms of expenditure, the government expects administrative expenses to rise slightly by 1.2% to RM303.8 billion next year, while net development expenses will decrease by 7% to RM90 billion, accounting for 4.6% of GDP.

BMI said this expectation is in line with the Public Finance and Fiscal Responsibility Act (FRA), which was just passed on October 12.

“According to the FRA, the government's annual development expenditure must exceed 3% of GDP.”

Overall, the total cost of the 2024 budget was RM393.8 billion, accounting for 19.9% of GDP, which is lower than this year's estimate of RM397.4 billion (20.2% of GDP).

According to research by market tracking agency Counterpoint, in data provided to Bloomberg News, it is estimated that the sales volume of Apple's flagship device within the first 17 days of release fell by 4.5% compared to the iPhone 14. These data have not been released to the public before.

Jefferies analysts such as Edison Lee (transliteration) believe that after Huawei unexpectedly released the Mate 60 Pro, overall sales volume surpassed that of Apple, and that sales of the iPhone 15 fell by a margin compared to previous generation products, and even reached double digits.

These two reports could be a potential blow to Apple. Currently, global smartphone shipments are expected to drop to their lowest level in more than 10 years, and some early buyers of the iPhone 15 Pro series reported that the body was overheating.

If the initial estimates are accurate, it will be one of the iPhones starting with the worst performance in China since around 2018. Since then, OPPO and Vivo have attracted Asian consumers.

Counterpoint believes that the decline in sales of new iPhones in China is mainly related to China's economic recovery difficulties, but emphasizes that the iPhone 15 achieved double-digit growth in sales in the US in the first 9 days compared to 2022.

The Asian gaming industry magazine “Asia Expo” (IAG) quoted a report from an analyst at Nomura Securities as saying that the increase in service tax had a negative impact on the Malaysian gaming industry, particularly Genting Malaysia and Genting.

“It is worth noting that historically, gaming companies have often absorbed service tax on their own, which means that the increase in service tax will have a negative impact on earnings before interest, amortization, and depreciation (EBITDA) for related players.”

Regardless, the analyst said that the government also reduced the entertainment tax on theme parks, family leisure centers, indoor game centers, and simulators by 5%, which is a small benefit for Genting Malaysia.

In the 2024 budget announced by Prime Minister and Finance Minister Dato' Sri Anwar on Friday (13th), the domestic service tax will be raised by 2%, from 6% to 8%.

Dr. Dato' Sri Hou Jianzhong, Chairman and CEO of iDibei Group, said at a press conference this afternoon that 1.6 million shares have been listed in the US and issued 4 million US dollars (about RM19) each, and raised 6.6 million US dollars (about RM31.26 million).

As for why is it not listed on the Bursa Malaysia Exchange? He explained that Malaysia's population is only about 33 million. No matter how good the enterprise is, it can only grow domestically, but it cannot expand its scale.

“Therefore, if the business of the enterprise is to expand, it must be repositioned to become a world leader in the near future.”

He said that with the company's listing on the NASDAQ on October 12, it will help expand its international footprint and enhance its reputation.

Looking forward to the future, the group will set up an “incubator” project to cultivate talents, train outstanding entrepreneurs in the field of sustainable health care, and stimulate small and medium-sized enterprises and talents with unlimited potential in ASEAN.

At a press conference after the launch ceremony today, he said that customers also accept cost transfer, because for customers, production parts have certain back-up costs, and are acceptable as long as they are still within range.

“As long as the quality of our products and our support services are as good as ever, our customers will have no problems. Moreover, only businesses in the Malaysian region were affected.”

Financial director Ye Ziqing also added that since the company provides year-round support services, it also has a huge inventory. The turnover rate is 250-300 days, which is within the normal range.

Through its subsidiaries, Meiying International is mainly engaged in the distribution of stainless steel sanitary valves, pipes and accessories, installation components and equipment, and rubber hoses.

At one point, Meisei International's stock price climbed to an all-day high of 37 cents, an increase of 48%.