MY Midday Insights | TRADING CAUTIONS, KLCI DROPS 2.59 POINTS
Overnight, US stocks closed higher with tech giants leading the way. At the same time, the market waited for US inflation data to be released. Overall, Asian stocks rose more or less, while Malaysian stocks fell slightly.
Looking back at the Malaysian stock market, the 12th Malaysia Plan did not seem to have had a positive impact yesterday. It opened 1454.29 points lower on Tuesday, and was in a narrow range of less than 7 points in the intraday period.
Investors have a strong wait-and-see mentality, are more cautious in trading, and have not traded more than 1,000 stocks.
As of 12:30 noon when the market closes, $FTSE Bursa Malaysia KLCI Index(.KLSE.MY$It closed at 1452.45 points, a slight drop of 2.59 points, or 0.18%.
The half-day turnover was 1.7 billion shares, with a transaction value of RM900 million.
The FTSE Malaysia All Stock Index closed at 10695.13 points, down 28.00 points.
There were 232 rising stocks, 538 falling stocks, 413 with no ups and downs, and 1,139 without trading.
Also, as of 12:30 noon, the exchange rate of the ringgit was 4.6753 to 1 US dollar.
Source: Nanyang Siang Pau, Klse Pulse
Market focus
Analysis: The 12th Malaysia plans to increase expenses, and the construction industry is expected to benefit
In the mid-term review of the 12th Malaysia Plan, the government has stepped up development efforts. Analysts believe that with additional development expenses of RM15 billion and an annual expenditure commitment of at least RM90 billion, the construction sector will be the main beneficiary.
Hong Leong Investment Bank said in its report today that the government has increased its share of infrastructure spending, stepped up efforts to develop underdeveloped states, build rural roads and transportation systems, and also reaffirmed the RM22 billion flood control project.
However, the plan did not introduce any new large-scale projects.
” Although the Penang Light Rail was mentioned, what is more disappointing is that the government did not mention the MRT 3 (MRT 3) and Long Xin High Speed Rail (HSR) matters. ”
However, analysts believe that the government expects to issue the first phase of the MRT 3 project in the first quarter of next year.
Analysts believe that for the remainder of the plan, that is, between 2023 and 2025, expanding development costs by RM15 billion is a positive step for the construction sector, but determining potential beneficiaries will depend on departmental segmentation.
Zafru: EU can cooperate with government to help implement sustainable economy vision
Minister of Investment, Trade and Industry Tunku Zafru believes that the EU-ASEAN Business Council (EU-ABC) can play an important role in cooperation with the government to help achieve the vision of a country with a dynamic and sustainable economy.
After meeting with the EU-ASEAN Business Council delegation on a business visit to China, he posted on Facebook this morning that during the meeting, the two sides discussed national policies to improve the investment and trade prospects of European companies in China.
He said the topics discussed included the 2030 New Industry Blueprint, Industry 4.0 national policy, the development of China's electric vehicle sector, the Malaysia-EU Free Trade Agreement (MUEFTA), and the EU's sustainable development policy.
“Hopefully, this strong cooperation will help achieve common goals, especially when Malaysia takes over the rotating chairmanship of ASEAN in 2025.”
Foreign investors fled with $5.1 billion in Malaysian debt in August
Foreign investors sold a total of 1.1 billion US dollars (about RM5.14 billion) of Malaysian bonds in August, recording the biggest outflow since 2021.
According to Bloomberg, a total of 1.1 billion US dollars of foreign capital was withdrawn from the Malaysian bond market in August, which is the biggest outflow since November 2021, proving that the previous trend of foreign investors continuing to buy Malaysian bonds was only short-lived.
The outflow in August directly reduced the inflow of foreign capital into Malaysian bonds in the first seven months of this year by about 1/4. At the end of August, the ratio of Malaysian debt held by foreign investors fell to 23.4%, while at the end of July it was 24.2%.
The Fed is likely to continue to raise interest rates and maintain the high interest rate cycle for longer, which is what triggered the withdrawal of foreign investors from Malaysian debt last month.
Foreign investors sold a total of 1.1 billion US dollars (about RM5.14 billion) of Malaysian bonds in August, recording the biggest outflow since 2021.
According to Bloomberg, a total of 1.1 billion US dollars of foreign capital was withdrawn from the Malaysian bond market in August, which is the biggest outflow since November 2021, proving that the previous trend of foreign investors continuing to buy Malaysian bonds was only short-lived.
The outflow in August directly reduced the inflow of foreign capital into Malaysian bonds in the first seven months of this year by about 1/4. At the end of August, the ratio of Malaysian debt held by foreign investors fell to 23.4%, while at the end of July it was 24.2%.
The Fed is likely to continue to raise interest rates and maintain the high interest rate cycle for longer, which is what triggered the withdrawal of foreign investors from Malaysian debt last month.
Focus on individual stocks
$UMC(0256.MY$Net profit for the year-end quarter of FY2023 surged 4.93 times year-on-year to RM3.37 million; turnover increased 62.12% year-on-year to RM12.02 million.
The company made a total net profit of RM10.32 million in fiscal year 2023, 60.54% higher than RM6.43 million in the previous fiscal year; revenue decreased 10.46% year-on-year from RM50.74 million in the previous fiscal year to RM4543 million.
uMedic Group issued a statement stating that the company's outstanding net profit performance in the current fiscal year was mainly due to the support of its manufacturing business. Looking ahead, as global health awareness grows, it is expected to stimulate global demand for medical devices.
$Apple(AAPL.US$The company removed it from $Qualcomm(QCOM.US$The contract to purchase the modem chip was extended for three years, which indicates that it took longer than expected to develop the chip on its own.
Qualcomm said in a statement that the new agreement will cover “smartphones launched in 2024, 2025, and 2026.”
The agreement between the two companies was originally scheduled to end this year. The latest iPhone, which was scheduled to be released this Tuesday, was originally thought to be one of the last iPhones equipped with a Qualcomm modem chip.
Contrary to market expectations, however, Qualcomm will maintain its position in Apple's supply chain.
According to data compiled by Bloomberg, Apple is Qualcomm's biggest customer, accounting for nearly a quarter of its revenue. Also, the relationship between the two parties helps confirm Qualcomm's claim that the company has the best smartphone modems.
The modem is a key component in a smartphone, enabling the phone to connect to the internet and make phone calls. Beginning with the iPhone 12, the chip began to support faster 5G networks.
Qualcomm said in a statement that the new agreement will cover “smartphones launched in 2024, 2025, and 2026.”
The agreement between the two companies was originally scheduled to end this year. The latest iPhone, which was scheduled to be released this Tuesday, was originally thought to be one of the last iPhones equipped with a Qualcomm modem chip.
Contrary to market expectations, however, Qualcomm will maintain its position in Apple's supply chain.
According to data compiled by Bloomberg, Apple is Qualcomm's biggest customer, accounting for nearly a quarter of its revenue. Also, the relationship between the two parties helps confirm Qualcomm's claim that the company has the best smartphone modems.
The modem is a key component in a smartphone, enabling the phone to connect to the internet and make phone calls. Beginning with the iPhone 12, the chip began to support faster 5G networks.
Arm's initial stock was oversubscribed by 10 times, and the response was enthusiastic or closed early
People familiar with the matter revealed that Arm Holdings' initial public offering (IPO) has been oversubscribed by 10 times, and the bank plans to stop accepting subscriptions by Tuesday afternoon.
People familiar with the matter, who did not wish to be named due to the undisclosed circumstances, said that Arm, a subsidiary of the SoftBank Group, will end the subscription one day early on Tuesday, but it still plans to set prices on Wednesday.
It's not uncommon for IPOs to stop subscriptions early, which usually indicates strong demand.
The above sources added that by Wednesday, the release could be oversubscribed by up to 15 times. Nothing has been finalized yet, and the IPO order is likely to change.
$HEKTAR(5121.MY$The academic industry of Yayasan Saad College in Melaka was acquired for RM150 million, and the relevant institutions continue to be leased back to the college.
According to the statement, Heda Real Estate Trust signed a conditional sales agreement with KYS College Private Limited to acquire the above 49.18 hectares of land from the latter and has 390,6874 square feet of facilities and floor space in the school.
In addition, Heda Maternity Care also signed a lease agreement with KYSA Education Private Limited to lease the college land mentioned above to the latter for a period of 30 years. According to the agreement, the amount for the first year of the lease was RM8.1 million, followed by an annual increase of 2.5% in rent.
Heda Real Estate Trust said the deal would help improve the diversity of the company's current asset portfolio and reduce its dependence on retail assets.
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Source: Nanyang Siang Pau, Klse Pulse
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