MY MARKET WATCHTOWER | WEAK SATISFACTION, KLCI opens MARGINALLY LOWER
Stock market outpost
Good morning! Here's what you need to know about today's market:
●US stocks closed: US stocks had mixed ups and downs, and the NASDAQ had four consecutive declines
●Apple has been sold off for two consecutive days, falling more than 6%
●Rectifying debt hinders economic transformation, Bloomberg: Malaysia's long-term growth is likely to fall to 2%
●Bank of China maintains interest rate of 3.00%
●Malaysia's foreign reserves increased slightly to US$112.5 billion
●Individual stocks to follow: SKYWLD, YINSON, APOLLO, DESTINI, MNHLDG, PUNCAK, FIAMMA
-klse pulse
Overnight US trends
Overnight, US stocks closed with mixed gains and losses on Thursday, and the NASDAQ recorded a fourth consecutive trading day of decline. Concerns about the Fed's interest rate policy path have once again engulfed the market, and investors are speculating whether the agency will raise interest rates again this year. The number of jobless claims fell at the beginning of last week, but labor costs rose more than expected.
The Dow closed up 57.54 points, or 0.17%, to 34500.73 points; the NASDAQ fell 123.64 points, or 0.89%, to 13748.83 points; and the S&P 500 fell 14.34 points, or 0.32%, to 4451.14 points.
Among them, $Apple(AAPL.US$It closed down 2.9%, continuing Wednesday's downward trend. The cumulative decline over two days was 6%, and the market value evaporated 190 billion US dollars. There are reports that its iPhones have been banned in some places and are prohibited from being brought into the office. According to another report, the European Union announced a list of the strictest digital regulations, and technology giants such as Apple ranked among them.
The trend of the Malaysian stock market
The overall performance of Bursa Malaysia is weak. The main reason is that trading sentiment is more cautious, and some investors prefer to cash out and wait and see.
At 9:20 a.m., $FTSE Bursa Malaysia KLCI Index(.KLSE.MY$It fell 0.65 points to 1459.42 points.
There were 185 rising stocks, 209 falling stocks, and 1008 with no ups or downs.
News highlights
Bloomberg: Malaysia's long-term growth is likely to fall to 2%
Thirty years east of the river, thirty years west of the river, no one knows what Malaysia will look like in 30 years. However, economists at a Bloomberg think tank point out that Malaysia's long-term economic growth may fall to 2% in 2053.
Bloomberg economist Tamara pointed out that Malaysia's growth momentum is slowing down at this stage, mainly in the post-pandemic period. Economic performance has rebounded, and commodity prices are gradually falling.
However, in the long run, continuing to maintain a fiscal consolidation plan that perpetuates debt will hinder the government's ability to lead Malaysia to a high-income economic plan.
Furthermore, economists say that under the influence of rising loan costs and political risks, capital expenditure in the private sector will also be further restricted.
Bank of Malaysia maintains interest rate of 3.00%
The Bank of Malaysia announced that it will continue to maintain the 3.00% overnight policy interest rate (OPR) unchanged! In line with market expectations.
The Monetary Policy Committee of the Bank of Malaysia voted today that the latest OPR will continue to be maintained at 3.00% in order to continue to support economic growth.
“At the current level of interest rates, the current monetary policy stance remains unchanged, that is, it continues to support the economy. At the same time, it is also in line with current assessments of inflation and growth prospects.”
“The Monetary Policy Committee will continue to be vigilant and constantly monitor data to assess domestic inflation and growth prospects. The committee will ensure that the monetary policy stance continues to be conducive to sustainable economic growth while prices are stable.”
The Bank of Malaysia's rhetoric is consistent with earlier, that is, the global economy is still expanding with the support of demand and a strong labor market, that is, the continued inflation trend and rising interest rates. Coupled with China's growth performance falling short of expectations, the global growth outlook still faces downside risks.
Malaysia's foreign reserves increased slightly to US$112.5 billion
The Bank of Malaysia announced that China's foreign exchange reserves as of August 30 reached 112.5 billion US dollars (about 525.2 billion ringgit), an increase of 300 million US dollars over mid-August.
According to a statement issued by the National Bank of Malaysia on Thursday, existing foreign exchange reserves are sufficient to cover 5.2 months of imports of goods and services and 1.0 times of short-term foreign debt.
In mid-August, Malaysia's foreign exchange reserves were reported at US$112.2 billion (at that time, the exchange rate was reduced to RM521,281 billion).
Focus on individual stocks
$SKYWLD(5315.MY$It spent 350 billion VND (approximately RM67.9 million) to fully acquire a Vietnamese company and obtain the right to develop 1.3 acres of land in Ho Chi Minh City.
According to the statement, Shitian Group reached a deal with several Vietnamese sellers through subsidiaries to fully acquire Thuan Thanh Trading Production and Real Estate Trading Joint Stock Company (TT) at a price of 350 billion VND.
TT is the only legal user of the above land, and Shitian Group intends to develop a residential project including a 24-storey apartment on the relevant land.
The related acquisition is expected to be completed by the end of this year, and Shitian Group intends to use internal capital, bank loans, or the issuance of Islamic bonds to raise funds for the acquisition.
$YINSON(7293.MY$Supported by strong market demand, it is predicted to reach earnings before interest, tax, amortization and depreciation (EBITDA) of close to US$1 billion (approximately RM4.67 billion) as soon as 2025.
Lin Zhenyan, CEO of Yunsheng Holdings, stated in an interview with Bloomberg that according to the company's current orders, it is expected to reach an EBITDA profit of close to 1 billion US dollars in 2025 and 2026.
“Our renewable energy business will start to be profitable next year.”
He added that Yunsheng Holdings plans to increase its share of green investment to 30% by 2030, and currently it is 8%.
$APOLLO(6432.MY$In the first quarter of fiscal year 2024, net profit surged 67.51% year-on-year to RM7.64 million, and announced a dividend of 20 cents per share.
Revenue for the first quarter up to the end of July was RM58.337,000, an annual increase of 5.19%.
According to the statement, the increase in revenue was mainly due to higher local sales, which led to a rise in net profit.
Looking ahead, the company is optimistic that it will continue to achieve satisfactory results by taking prudent measures to improve operational efficiency while focusing on product and service quality.
$DESTINI(7212.MY$It was announced that a purchase contract worth RM19.04 million was issued by the Ministry of Defense.
The contract was obtained by the subsidiary Destini Prima Pte Ltd., which will be responsible for the procurement, supply and delivery of FZ rocket engines for the Royal Malaysian Air Force.
The contract period is 2 years, from September 6 this year to September 5, 2025.
$MNHLDG(0245.MY$It was announced that it has received a substation project contract worth RM23.8 million from National Energy (TENAGA, 5347, Main Board Utility Unit).
MN Holdings is responsible for constructing and testing a 132 kV (kV) substation for the customer in Bekok (Bekok), Johor.
The contract will take effect from September 4, and the work must be completed within 540 days.
Dato' Deng Xiangzhan, executive director of MN Holdings, said that the above contract is expected to contribute positively to the company's profits during the 2024 and 2025 fiscal years (settlement at the end of June).
$PUNCAK(6807.MY$It was announced that it plans to issue Perpetual Islamic Bonds with a book value not exceeding RM1 billion.
The plan will be implemented through its wholly-owned subsidiary, Ideal Water Resources Pty Ltd.
The company will issue the first batch of Islamic bonds within 90 days of reporting to the Securities Regulatory Commission.
The company said that issuing debt refunds will provide flexibility for the company's capital and raise capital through this plan to meet the capital needs of the company and its subsidiaries.
$FIAMMA(6939.MY$The subsidiary, which received approval from the Federal District Land Authority, purchased 1.88 acres of government land located on Ye Guansheng Road in Kuala Lumpur for RM19,6408,355.
Jiaman Holdings plans to develop the relevant land into a comprehensive development project with 20% residential and 80% commercial areas.
Today, the company has fully paid the purchase price to the Land Bureau.
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-Source: Nanyang Siang Pau, Bursa Malaysia
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