MY MIDDAY INSIGHTS | OPEN HIGHER, KLCI RISE 9.05 POINTS

Trading in the Asian stock market is hot, and the region is rising. Less than 30 hours until the countdown to the 2024 budget, Malaysian stocks continued to rise to “create momentum” for the budget.

Malaysian stocks opened at 1437.96 points today, and with the help of heavyweight bank stocks, they easily broke through the 1440 level and are moving towards 1,450 points.

The half-day trading volume was 1.9 billion shares, with a transaction value of RM900 million.

The FTSE Malaysia All Stock Index closed at 10,700.51 points, starting at 61.66 points.

There were 443 rising stocks, 320 falling stocks, 432 had no ups or downs, and 1,160 had no transactions.

As of 12:30 p.m., the ringgit had rebounded to 4.7203 to USD 1.

Malaysia's manufacturing sales declined by 3.3% year-on-year in August to RM152.3 billion.

According to data from the Malaysian Bureau of Statistics, manufacturing sales fell 3.3% year-on-year in the same month. The main reason for the year-on-year decline in manufacturing sales in August was dragged down by a 12.1% drop in the petrochemical and rubber-plastics industries. The industry also declined by double digits for 3 consecutive months.

In addition, food, beverage and tobacco products (-6.6%) and wood, furniture, paper products and printed products (-0.1%) also contributed to the contraction in sales in August.

However, on a month-to-month basis, manufacturing sales rebounded 5.8%, while July sales recorded negative 2.4%.

Export-oriented industries accounted for 72.7% of manufacturing sales in August, down 6.7% year-on-year; however, domestic demand-led industrial sales rose 7.2% year-on-year, mitigating the negative impact of exports.

If compared on a monthly basis, export sales and domestic sales start at 6.7% and 3.5%, respectively.

Meanwhile, the number of manufacturing employees in August was 2.36 million, an increase of 2.0% over the same period last year; on a monthly basis, there was also a slight increase of 0.6%.

Salaries of manufacturing employees increased by 3.0% per year to RM8 billion in the same month, while per capita monthly wages rose 1.0% to RM3,397 per year, but per capita sales fell 5.2% to RM64,660.

Summarizing the performance of the first eight months of this year, manufacturing sales totaled RM1.184.8 trillion, up 1.7% year-on-year, while the number of employees increased 2.0% to 2.36 million during the period, total wages rose 3.7% to RM64.6 billion, and per capita sales fell slightly by 0.2% to RM50,093.

Due to a contraction in manufacturing production, Malaysia's Industrial Production Index (IPI) fell 0.3% year-on-year in August, and increased by 0.7% in July.

On a monthly basis, compared with the 1.8% contraction of the industrial production index in July, the industrial production index increased by 2.8% in August.

According to the latest data released by the Bureau of Statistics, this is mainly due to a contraction in manufacturing production. Compared with the 0.2% decline in July, the manufacturing industry contracted 0.6%.

According to the report, manufacturing production deteriorated mainly due to the continued decline in export-oriented industries. Export-oriented industries fell 2.6% in August and 2.7% in July.

In addition, the mining industry's production index increased slightly by 0.1%, and increased by 4.2% in July; the electricity sector also continued to grow, at 1.9%, compared to 1.5% in July.

In contrast, crude oil and condensate production fell 3.3% in August after recording a strong 11.8% increase in July.

Furthermore, compared to 1.5% in July, the electricity sector continued to grow to 1.9% in August. Compared with the electricity index of 1.8% in July, there was a 0.3% increase in August.

Overall, the performance of the industrial production index for the first eight months of this year grew slowly by 1.0%, down from 7.3% in the same period last year.

The 2024 Budget is about to be announced on October 13 (Friday). Will the government distribute candy? Or will the consumption tax (GST) be restarted?

In order to give you a full understanding of the budget, “Nanyang Wealth Creation Hall” invited three expert guests to analyze and interpret them from different perspectives to let you know where the economic path is next year.

The guest lineup included Dr. Xiao Saizi, Assistant Professor of Economics at the University of Nottingham; Dato' Cai Zhaoyuan, Executive Director and Director of Tax and Financial Advisory at the Asian Enterprise Wealth Management Center; and Huang Weihan, CEO and Managing Director of Tradeview Capital.

Remember to stay on the “Nanyang Siang Pao” Facebook page and Youtube at 4 p.m. (Saturday) on October 14 (Saturday) to get the three experts' deep opinions on the 2024 budget.

With the opening of the market this morning, Seven Star Home rose to 25.5 cents, up 0.5 cents or 2% from the initial public offering (IPO) price of 25 cents. The initial transaction volume reached 15.1808,700 shares.

Lu Guoqiang, executive director and vice president of Seven Star Home Furnishing, pointed out to the media after the listing ceremony today that with the listing on the Malaysian Stock GEM, the company will continue to focus on creating more value for shareholders.

“The listing has increased the recognition of our brand among potential and new customers, further strengthening our market position and industry reputation.”

He said that with the capital raised through initial shares, the company is now ready to implement an expansion strategy, which includes opening 18 new stores within the next three years, covering East and West Malaysia.

The company also plans to enhance its IT infrastructure, including adopting an enterprise resource planning system, enhancing e-commerce websites, and upgrading mobile apps.

As for the outlook for the retail industry, Lu Guoqiang said that despite facing problems with inflation and rising interest rates, market demand is still positive.

Heda Real Estate Trust reported to the exchange that this private sale will issue up to 99.76 million new shares, or 20% of the equity expansion, to third party investors whose status is yet to be determined.

Based on a reference price of 53 cents, Heda Real Estate Trust can raise up to RM53.64 million. Of the funds raised, RM52.5 million will be used as investment capital for the next two years, while the remaining RM1.14 million will be used to cover the expenses required for this corporate activity.

Not long ago, Heda Real Estate Trust proposed to buy the Melaka Yayasan Saad College industry for RM150 million to expand its investment portfolio.

In response to this private allocation, the estate trust stated that compared with traditional bank loans, the proposal to raise capital through private placement will not increase the company's interest expenses or affect profit performance.

The company said in a statement on Thursday that the cooperation also covers artificial intelligence, data management and related large-scale information technology projects in the public and private sectors.

Strateq is a global multidisciplinary technology enabler that supports digital strategies in healthcare, energy, utilities, financial services, and the public sector through end-to-end digital capabilities.

With new capabilities and strong partnerships, the company is looking forward to providing big data and analytics, as well as related services, in local and international markets,” said Dinai Executive Chairman Tan Sri Saizena Abidine.

“The synergy between us and Strateq can be a springboard to accelerate the adoption of advanced digital technology, making full use of the capabilities of both parties in the field of digital technology.”