MY Morning Wrap | Berjaya Food Expands to Nordic Markets with Starbucks Operations in Iceland, Denmark, and Finland
Good morning mooers! Here are things you need to know about today's market:
●August Market Turmoil: Dow Plummets Over 1,000 Points, Nasdaq and S&P 500 Tumble
●Malaysia Foresees Economic Slowdown in Second Half of 2024 Amid Global Uncertainties, Says Kenanga
●Malaysia's Digital Investments Hit Record RM66.22 Billion in First Half of 2024, Surpassing Previous Year
●Ringgit's Record Rally Against US Dollar Leads Asian Currency Gains
●Stocks to watch: Berjaya Food, Sasbadi, Notion VTec
-moomoo News MY
Wall Street Summary
The start of August has been marked by significant losses across major U.S. stock indices, signaling a rough beginning to the month for investors. On Monday, the Dow Jones Industrial Average experienced a sharp decline of 1,033 points, while the Nasdaq Composite Index suffered a 7% drop over the course of four days. Leading the downturn were sectors such as technology and consumer staples, with notable companies like Nvidia and Amazon witnessing drops of 6% and 4%, respectively. Heightened market volatility saw the CBOE Volatility S&P 500 Index (VIX) surge by 120% at one point. At the close of trading, the $S&P 500 Index (.SPX.US)$ had fallen 3%, the $Dow Jones Industrial Average (.DJI.US)$ by 2.60%, and the $NASDAQ 100 Index (.NDX.US)$ by 3.42%, reflecting widespread investor unease.
Breaking News
Malaysia Foresees Economic Slowdown in Second Half of 2024 Amid Global Uncertainties, Says Kenanga
Kenanga Investment Bank projects Malaysia's economic growth to moderate to 4.3%-4.6% in the second half of 2024, down from a 5.0% increase in the first half, due to heightened external risks including global monetary tightening and a sluggish recovery in China. Despite revising down the gross export growth forecast, Kenanga remains cautiously optimistic, citing strong domestic demand and the services sector as factors that will underpin the economy's resilience.
Malaysia's Digital Investments Hit Record RM66.22 Billion in First Half of 2024, Surpassing Previous Year
Malaysia's digital investments have reached a new high of RM66.22 billion in the first half of 2024, outpacing the entire previous year's total of RM46.2 billion. Digital Minister Gobind Singh Deo highlighted the surge as a reflection of enhanced investor confidence and the anticipated economic growth of 4-5%. This investment wave has generated 25,498 jobs, exceeding the previous year's figure, with digital exports fostered by the Malaysia Digital Economy Corporation (MDEC) amounting to over RM1.93 billion. The data center and cloud sectors led the investment values, while Information Technology (Infotech) and Global Business Services (GBS) dominated in digital job creation. Additionally, 451 tech companies received the Malaysia Digital (MD) Status in the first half of 2024, with incentives including tax breaks and access to funding.
Ringgit's Record Rally Against US Dollar Leads Asian Currency Gains
The Malaysian ringgit has seen its largest daily appreciation against the US dollar since October 2015, soaring by 2.28% and outshining other Asian currencies with its year-to-date performance. Climbing to 4.4250, this marks the ringgit's strongest position since April 2023. Forex analysts from CIMB Treasury & Market Research anticipate further strengthening, driven by increased net forex inflows and a recovery in Malaysia’s electrical and electronics exports. The shift in Malaysian exporters converting more earnings into ringgit and the reduced preference for holding US dollars, due to narrowing yield differentials between the US and Malaysia, support the local currency's rise. Additionally, prospects of US rate cuts, strong export and foreign investment outlooks, and the normalization of non-resident bond and equity holdings contribute to a favorable scenario for the ringgit. Despite the US dollar's oversold status, UOB Global Economics & Markets Research believes the selling trend will persist, with the ringgit appreciating 6.2% over the past month and 3.64% year to date, in contrast to the general depreciation of its Asian counterparts.
Stocks to Watch
$BJFOOD (5196.BMS)$: Berjaya Food Bhd announced that its international division, Berjaya Food International (BFI), has obtained the rights to operate Starbucks stores in Iceland, Denmark, and Finland. This move signifies the first venture of a Malaysian public-listed food-and-beverage company into the Nordic region. BFI plans to concentrate on employing local staff and sourcing from local suppliers, thereby integrating into the regional market while bringing its expertise in culinary operations and management to the new territories. This expansion represents a strategic growth step for Berjaya Food Bhd, enhancing its global presence in the competitive food-and-beverage industry.
$SASBADI (5252.BMS)$: Sasbadi Holdings Bhd, listed on the Kuala Lumpur Stock Exchange as SASBADI, has been awarded two contracts by the Ministry of Education in Malaysia. These contracts are for the supply of reprinted educational textbooks to schools and have a combined estimated value of RM11.71 million. The first contract, with an approximate value of RM6.89 million, is assigned to Sasbadi Sdn Bhd, a fully owned subsidiary of Sasbadi Holdings. The second contract, worth around RM4.82 million, has been granted to The Malaya Press Sdn Bhd, an indirectly owned subsidiary of the group. These contracts represent a significant business achievement for Sasbadi Holdings Bhd, reinforcing its position as a key player in the educational publishing industry in Malaysia.
$NOTION (0083.BMS)$: Notion VTec Bhd, trading under the ticker NOTION on the Kuala Lumpur Stock Exchange, has experienced a significant boost in its financial performance with an elevenfold increase in net profit for the third quarter of the fiscal year 2024 (3QFY2024). The company's net profit soared to RM20.25 million from RM1.82 million in the same period the previous year, marking its most profitable quarter since the fourth quarter of fiscal year 2018 (4QFY2018) when it earned RM36.54 million. This impressive growth is attributed to a 63% increase in quarterly revenue, which rose from RM83.2 million to RM135.5 million. Notion VTec's substantial gain in profitability highlights its strong market performance and operational success.
$RHBBANK (1066.BMS)$: The High Court has ruled in favor of RHB Bank Bhd, traded on the Kuala Lumpur Stock Exchange under RHBBANK, in its application for a summary judgement against Ireka Corp Bhd (KL:IREKA). The ruling requires Ireka Corp Bhd to fulfill its corporate guarantee obligations by paying RHB Bank the sum of RM6.53 million. This amount represents the default on a revolving credit facility provided to Ireka Engineering & Construction Sdn Bhd, a wholly owned subsidiary of Ireka Corp, up to the date of December 31, 2023. A summary judgement is issued by a court when it determines that there are no material issues of fact in dispute, allowing for a faster resolution than a full trial. This decision by the High Court means that Ireka Corp Bhd is legally obligated to settle the owed amount to RHB Bank without further delay.
$TALAMT (2259.BMS)$ & $IJM (3336.BMS)$: Talam Transform Bhd (KL:TALAMT) has agreed to sell a 27.72-acre parcel of land in Sepang to Ever Mark (M) Sdn Bhd, a subsidiary of IJM Corp Bhd (KL:IJM), as part of a debt repayment plan. This arrangement will allow Talam Transform's wholly owned subsidiary, Talam Leisure Development Sdn Bhd, to reduce its indebtedness by RM66 million and benefit from an RM18 million interest waiver on the debt it owes to IJM Properties, another wholly owned unit of IJM Corp. The land disposal serves as a strategic move to improve Talam Transform's financial standing through asset liquidation and debt reduction.
$JTGROUP (0292.BMS)$: Jati Tinggi Group Bhd (KL:JTGROUP) has announced that it has been awarded a RM33.8 million sub-contract for engineering, procurement, construction, and commissioning (EPCC) by Gamuda Engineering Sdn Bhd, a fully owned subsidiary of Gamuda Bhd (KL:GAMUDA). The awarded sub-contract, intended for Jati Tinggi's unit Jati Tinggi Holding Sdn Bhd, involves providing horizontal directional drilling work in the Gombak area of Selangor. This deal signifies a substantial addition to Jati Tinggi Group's portfolio of construction and engineering projects.
$HANDAL (7253.BMS)$: Handal Energy Bhd (KL:HANDAL), a provider of offshore crane services, has been taken to court by Seaoffshore Shared Sdn Bhd, a company in which Handal's group managing director, Sunildeep Singh Dhaliwal, holds a substantial shareholding. The legal action pertains to an alleged unpaid payment, with Seaoffshore claiming an outstanding amount of RM9.58 million as of June 30, 2024, along with an additional RM170,369 invoiced in July 2024. The lawsuit asserts that the sums are due for management services purportedly provided by Seaoffshore to Handal.
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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Shivnandan Yadav : laxmi choudhary
Shivnandan Yadav : laxmi choudhary
Ernestine : k
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