MY Morning Wrap | AirAsia X Set to Directly Acquire Capital A's Aviation Business for Faster Takeover
Good morning mooers! Here are things you need to know about today's market:
●U.S. Stocks Rally on Prospects of Federal Reserve Interest Rate Cuts
●Malaysia's Finance Minister II Foresees Economic Resurgence to 'Asian Tiger' Status
●Malaysian Government Targets Subsidy Leakages in Sabah and Sarawak
●Stocks to watch: AirAsia X, Capital A, Hibiscus
-moomoo News MY
Wall Street Summary
U.S. equity markets experienced a surge as key technology stocks, including NVIDIA, Microsoft, Amazon, and Meta Platforms, witnessed a rebound. This positive movement came after the release of recent U.S. economic data, which investors interpreted as a sign that the Federal Reserve might begin reducing interest rates in the coming months. The $S&P 500 Index(.SPX.US$ rose by 1.1% to settle at 5459.10, the $Nasdaq Composite Index(.IXIC.US$ increased by 1.03% to 17,357.88, and the $Dow Jones Industrial Average(.DJI.US$ saw a significant gain of 1.6%, closing at 40,589.34. The optimism around potential rate cuts has provided a boost to market sentiment, particularly for growth and tech stocks that are sensitive to interest rate changes.
Breaking News
Malaysia's Finance Minister II Foresees Economic Resurgence to 'Asian Tiger' Status
Datuk Seri Amir Hamzah Azizan, Malaysia's Finance Minister II, expressed optimism about Malaysia's economic trajectory during his visit to Singapore. Analysts and rating agencies share a positive outlook, indicating that the nation is on track to recapture its 'Asian Tiger' status. Amidst a backdrop of political stability and post-pandemic recovery, Amir Hamzah highlighted the government's fiscal management, including targeted subsidies and efficient use of limited fiscal space. The government's operating expenditure reflects a strong commitment to social support while acknowledging the need for prudent spending. As Malaysia prepares for Budget 2025, the Ministry of Finance is actively seeking public and stakeholder input to shape the nation's economic strategy and foster inclusive growth.
Malaysian Government Targets Subsidy Leakages in Sabah and Sarawak
The Ministry of Domestic Trade and Cost of Living (KPDN) in Malaysia is launching a public initiative to prevent the misuse of subsidised products, particularly diesel and RON95 petrol, in Sabah and Sarawak. Minister Datuk Armizan Mohd Ali announced that this movement is crucial for enforcing the proper distribution of subsidies and eliminating illegal activities like smuggling and misappropriation. Despite the targeted subsidy implementation across Peninsular Malaysia, Sabah, Sarawak, and Labuan have been exempted due to their unique economic factors and the significant reliance on diesel vehicles. The federal government has allocated an estimated RM3.6 million for subsidies in these regions for the year. Armizan highlighted that while there is an issue with subsidy leakage, the government is determined to tackle the problem through strengthened enforcement by various agencies and calls for public cooperation in reporting illicit activities related to subsidised goods.
Stocks to Watch
$AAX(5238.MY$: AirAsia X Bhd (AAX) has modified its acquisition approach for $CAPITALA(5099.MY$'s aviation business, opting for a direct purchase instead of the previously planned NewCo structure. This change aims to speed up the takeover process. The decision to forgo the internal reorganisation and its related agreement was made to prioritize a swift completion of the acquisition, considering the time-sensitive nature of the deal and its significance to AAX's group operations.
$HIBISCS(5199.MY$: Hibiscus Petroleum Bhd has been granted a 65% participating interest (PI) and operatorship in a production sharing contract (PSC) by Malaysia's national oil company, Petroliam Nasional Bhd (Petronas). The contract, effective from July 1, has been awarded to Hibiscus's subsidiary, Hibiscus Oil & Gas Malaysia Ltd, for a duration of 24 years. Petronas Carigali Sdn Bhd holds the remaining 35% stake in the PSC.
$DNEX(4456.MY$: Ping Petroleum Sdn Bhd, under Dagang NeXchange (DNEX), in partnership with Duta Marine Sdn Bhd, has been awarded a production sharing contract (PSC) by Petronas for the small field asset (SFA) cluster comprising the Bubu, Bunga Tasbih, and Enau fields. This award is part of Petronas' initiative under the Malaysia Bid Round Plus Round I, targeting clusters of discovered resources. The PSC encompasses 12 fields in the Malay basin, strategically located near existing infrastructure to facilitate synergistic developments.
$VITROX(0097.MY$: ViTrox Corp Bhd co-founders have teamed up with Southern Capital Group to establish the Cambrian Fund, a venture capital initiative set to launch in October. The fund aims to propel Malaysia's tech ecosystem by investing in startups focused on Industrial 4.0, vision AI, and robotics.
$EKOVEST(8877.MY$: Ekovest Bhd has announced a further six-month extension, now until January 27, 2025, for ongoing discussions regarding a potential merger between its wholly owned subsidiary Ekovest Construction Sdn Bhd (ECSB) and Knusford Bhd. This extension follows a previous two-month delay, moving the deadline from May 28, 2024, to July 28, 2024, and now to the new date in 2025.
$ALAM(5115.MY$: Alam Maritim Resources Bhd, currently classified under Practice Note 17 (PN17), has unveiled a comprehensive regularisation plan aimed at reviving its financial standing and exiting its PN17 status. The strategic plan entails a substantial share capital reduction of RM440 million, a share consolidation on a 10-to-one basis, the issuance of renounceable rights shares coupled with warrants, and a scheme of arrangement with its creditors. The reduction in share capital is specifically designed to offset the company's considerable accumulated losses, which stand at RM489.81 million as of March 31, 2024.
$DSONIC(5216.MY$: Datasonic Group Bhd has successfully clinched a contract valued at RM30 million to provide smart cards to Perum Percetakan Negara Republik Indonesia (PNRI), affiliated with the Indonesian Ministry of State-Owned Enterprises. The agreement, executed by PT Datasonic Teknologi Indonesia, a subsidiary of Datasonic Group Bhd, stipulates the supply of smart cards over a flexible period ranging from one to three years. The securing of this contract marks a significant milestone for Datasonic Group Bhd as it expands its footprint in the international market, demonstrating its capability and trustworthiness in producing high-quality smart card solutions. This deal not only solidifies Datasonic's presence in Indonesia but also potentially opens doors for future collaborations within the region's government sectors.
$KITACON(5310.MY$: Kumpulan Kitacon Bhd has announced that its subsidiary, Kitacon Sdn Bhd, has been awarded a lucrative RM54.5 million contract by Rawang Lakes Sdn Bhd for the construction of 186 terrace homes in Bandar Tasik Puteri, located in Rawang, Selangor. The project is scheduled to kick off on August 1 and is expected to be completed within a 20-month timeframe. This new contract signifies a substantial addition to Kumpulan Kitacon Bhd's current portfolio and reflects the company's continued growth in the construction sector. The development will contribute to meeting the housing demands in the expanding Rawang area and underscores Kitacon's role in infrastructure development within the region.
$DXN(5318.MY$: DXN Holdings Bhd, a leader in the health and wellness direct selling industry, has announced a net profit increase of 10.26% for the first quarter ending May 31, 2024, reaching RM85.56 million, or 1.72 sen per share. This is an uptick from the RM77.60 million, or 1.60 sen per share, recorded in the same quarter of the previous year. The company's revenue also saw a healthy rise of 12.05% year-on-year, totalling RM475.05 million compared to RM423.98 million, driven by organic growth in strategic markets such as Peru, Bolivia, Mexico, and India. In line with the positive financial outcome, DXN has declared a first interim dividend of 0.9 sen per share, amounting to RM44.8 million. This reflects the company's continuous success in expanding its global footprint while rewarding its shareholders for their investment.
$HOMERIZ(5160.MY$: Homeritz Corp Bhd, a manufacturer specializing in upholstery furniture, has reported a substantial 46.37% jump in net profit for the third quarter ending May 31, 2024, achieving RM9.09 million or 1.96 sen per share, compared to RM6.21 million or 1.34 sen per share from the previous year. This impressive increase is attributed to a combination of higher sales volume and the beneficial impact of a stronger US dollar. Additionally, the company's revenue soared by 63.34%, reaching RM61.88 million, up from RM37.88 million in the same period last year. Despite this positive financial performance, Homeritz has opted not to declare a dividend for this quarter. The company’s financial results reflect its ability to capitalize on favorable market conditions and currency movements to drive growth and profitability.
$WPRTS(5246.MY$: Westports Holdings Bhd, a prominent port operator, reported a 4.61% increase in net profit for the second quarter of the financial year 2024 (2QFY2024), recording RM203.75 million compared to RM194.76 million in the same period last year. This profit growth is primarily due to a reduction in operating expenses. The company also saw a slight revenue increase of 1.9%, amounting to RM552.99 million up from RM542.64 million, which was largely driven by higher container revenue. Capitalizing on its financial performance, Westports has declared an interim dividend of 8.89 sen per share, scheduled for distribution on August 21. This announcement reflects the company's commitment to delivering value to its shareholders, bolstered by its operational efficiency and growth in container throughput.
$MGRC(0155.MY$: Malaysian Genomics Resource Centre Bhd (MGRC), a leading biopharmaceutical company, is set to initiate a private placement with the goal of raising approximately RM4.98 million. The proposed placement is calculated using an illustrative price based on the company's recent five-day volume-weighted average market price, which was recorded at 40.3 sen per share. Consequently, the placement shares are to be issued at a price of 36.3 sen each. This strategic move aims to infuse additional capital into the company, potentially enabling MGRC to further its research and development, expand its operations, or undertake new projects in line with its growth strategy.
Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The EDGE
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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shamsury79 : Good
Elaine Ford : that is good to know
Ernestine : ok