MY Morning Wrap | Capital A Gets Fourth Extension to Submit Proposal to Regularise PN17 Condition

The S&P 500 and the Dow Jones climbed to their all-time highs, driven by investor excitement over artificial intelligence that has sustained the rally in tech stocks, led by the Magnificent Seven. The $S&P 500 Index (.SPX.US)$ gained 1.2% to close at 4,839.81, while the $Dow Jones Industrial Average (.DJI.US)$ gained 1.1% to 37,863.8. The tech-heavy $Nasdaq Composite Index (.IXIC.US)$ advanced 1.7% to finish at 15,310.97. One of the seven tech giants, $Meta Platforms (META.US)$, also surpassed its previous peak, ending Friday at $383.45 after founder and CEO Mark Zuckerberg said his company is "building massive compute infrastructure" to support his long-term vision for general intelligence. Its supplier, $NVIDIA (NVDA.US)$, another stock from that magnificent group, advanced, boosting its gains over the past year to more than 250%.

$CAPITALA (5099.MY)$: Capital A Bhd has received Bursa Malaysia's approval for a fourth extension to submit its proposal to regularise its Practice Note 17 (PN17) condition and now has until June 30, 2024, to do so. The group was placed in Bursa's PN17 list of financially-distressed entities in January 2022 and was initially supposed to submit the plan by Jan 7, 2023. The deadline was extended thrice, first to July 7, then to Oct 7, and subsequently to Dec 31, 2023.

$EDELTEQ (0278.MY)$: Edelteq Holdings Bhd has signed Memoranda of Understanding (MOUs) with a Chinese company and a Malaysian outfit to start semiconductor-related businesses locally and abroad. The company has signed an MOU with China-based CYG Semiconductor Equipment (Zhuhai) Co Ltd to set up two companies, one in China and another in Malaysia, that will be involved in semiconductor-related businesses. Edelteq also signed an MOU with local optical inspection system firm Halo Technologies Sdn Bhd to set up a business involved in semiconductor design, manufacturing, and selling of substrate automatic optical inspection (AOI) system.

$TANCO (2429.MY)$: Tanco Holdings Bhd has witnessed the conversion of 6.07 million warrants at the exercise price of 31 sen per share, costing RM1.88 million, despite a downward spiral in the company's share price. These warrants were issued under Tanco's bonus issue in August 2022, involving up to 1.47 billion free warrants on the basis of one warrant for every two existing shares held by entitled shareholders. The largest warrant holder, according to Tanco's annual report, is its major shareholder Datuk Seri Andrew Tan Jun Suan with 92.45 million warrants or 12.11% held as at Oct 5 last year.

$SRIDGE (0129.MY)$: Silver Ridge Holdings Bhd, whose share price hit limit down for a second consecutive day on Friday, has revealed that it is in discussions over several business proposals in response to the unusual market activity query issued by Bursa Securities. The company stated that these discussions are in the preliminary stages, and it is unaware of any corporate development related to its business and affairs that may account for the sharp fall in its share price. Silver Ridge Holdings confirmed that it is in compliance with the Bursa Securities Listing Requirement on immediate disclosure obligations.

$BETA (0263.MY)$: Betamek Bhd has stated that the investigations by the Malaysian Anti-Corruption Commission (MACC) into its managing director Mirzan Mahathir have nothing to do with the company, and it is operating its business as usual without interruption in production and delivery of its products to customers. The statement came after MACC summoned Mirzan, the son of former two-time prime minister Tun Dr Mahathir Mohamad, to assist with an ongoing investigation based on information from the Panama Papers, as well as his business activities involving the sale and purchase of government-linked companies (GLCs).

$YNHPROP (3158.MY)$: YNH Property Bhd, in which Datuk Dr Yu Kuan Chon is the largest shareholder with a 32.6% stake, has shared details of a turnkey construction contract (TCA) in relation to a RM150 million land deal in Desa Sri Hartamas in response to a query from Bursa Malaysia. The company also stated that it had implemented an internal control policy to govern all transactions, in order to rectify its oversight in not disclosing the Desa Sri Hartamas land deal and ensure that similar issues will not recur.

$EUPE (6815.MY)$: Eupe Corp Bhd, a property developer, is set to purchase two additional parcels of freehold land in Sungai Petani, located in the Kuala Muda district of Kedah, for RM40.68 million. The purchase will increase the land area around its proposed township for investment. Eupe Corp is buying the freehold plots, which have a total area of 221,238 sq m, from Sing Na Tian Development Sdn Bhd. The plots are contiguous with two other parcels that Eupe bought in 2022 from SNTDSB for a total of RM55.31 million, with a collective area of 300,762 sq m.