MY Morning Wrap | Four Mobile Network Operators Acquire 16.3% Stake in Digital Nasional
Good morning mooers! Here are things you need to know about today's market:
●US Stocks Drop on Slowing Inflation and Strong Consumer Sentiment Data
●Johor Causeway Celebrates Centenary as Monument of Malaysia-Singapore Diplomatic Relations
●No Increase in Electricity Tariffs for Peninsular Malaysia Users Until Year-End
●Stocks to watch: Maxis, CelcomDigi, YTL Power, TM
-moomoo News MY
Wall Street Summary
US stocks fell on Friday as traders reacted to Personal Consumption Expenditures (PCE) data showing slowing inflation and better-than-expected consumer sentiment data. However, the market still had a strong first half in 2024. The $S&P 500 Index (.SPX.US)$ was down 0.41%, and the Nasdaq Composite Index fell 0.71%, while the Dow Jones Industrial Average dropped 0.12%. The S&P 500 climbed 14.5% in the first half of the year, while the $Nasdaq Composite Index (.IXIC.US)$ gained 18.1% due to AI-driven trades, and the $Dow Jones Industrial Average (.DJI.US)$ advanced 3.8% in the same period.
Breaking News
Johor Causeway Celebrates Centenary as Monument of Malaysia-Singapore Diplomatic Relations
The Johor Causeway, which celebrates its centenary this year, is hailed as a historic monument that has borne witness to the enduring diplomatic relations between the governments of Malaysia and Singapore, especially in Johor. Johor Royal Court Council advisor Datuk Prof Dr Kassim Thukiman said that the Johor Causeway has played a significant role in both nations' continuous economic development. He noted that historically, the Johor Causeway has encouraged traders in Singapore to invest in Johor and to utilise the causeway to export goods. The present generation should recognise the causeway's considerable significance in terms of its impact on economic development, in strengthening familial bonds among the people, and in fostering friendship and diplomatic relations between the two countries. The Johor Causeway was closed for two years when the national borders were shut on March 18, 2020, due to the Covid-19 pandemic.
No Increase in Electricity Tariffs for Peninsular Malaysia Users Until Year-End
Peninsular Malaysia's electricity tariffs will not increase for all users from July 1 until December 31, according to the Ministry of Energy Transition and Water Transformation (Petra). Petra said the matter was agreed upon by the government on June 28 and reflected the government's commitment to ensuring the well-being of the people by ensuring domestic consumers continue to be protected through the targeted implementation of electricity subsidies. Petra also noted that the government had agreed to lower the surcharge by one sen/kWh for street lighting category (tariff G and G1) and reduce the imbalance cost pass-through (ICPT) rate of one sen/kWh for commercial and industrial users from July to December 2024.
Stocks to Watch
$YTLPOWR (6742.MY)$ & $TM (4863.MY)$ & $MAXIS (6012.MY)$: Four mobile network operators (MNOs), CelcomDigi Bhd, Maxis Broadband Sdn Bhd, U Mobile Sdn Bhd, and YTL Power International Bhd, have each completed their respective share subscription agreements (SSAs) and acquired a 16.3% stake in Digital Nasional Bhd (DNB), higher than the 14% they were initially expected to take up, as Telekom Malaysia has yet to complete its SSA. DNB said that the four MNOs now collectively own 65.1% in the company, leaving the Malaysian government with a 34.9% stake and a special share in DNB, which it will hold for a designated period.
$AIRPORT (5014.MY)$: Two subsidiaries of Malaysia Airports Holdings Bhd, Malaysia Airports Sdn Bhd (MASB) and Malaysia Airports Sepang Sdn Bhd (MASSB), are seeking a summary judgment from the High Court against MYAirline Sdn Bhd for a claim of RM17.74 million owed by the troubled carrier. The move against MYAirline has not been reported previously. MYAirline had sought to strike out the bid for summary judgment, for which oral submissions were heard on Friday before Judicial Commissioner Gan Techiong.
$SUPERLN (7235.MY)$: Superlon Holdings Bhd, a rubber products manufacturer, reported a more than threefold jump in net profit for 4QFY2024, thanks to higher gross profit amid increased demand for its products and lower effective group taxation. Net profit surged to RM2.05 million from RM608,000, as revenue climbed 26.4% to RM30.9 million from RM24.43 million a year earlier due to higher sales volume. The increase in profitability is also attributable to lower material costs and favourable exchange rate movements.
$CYPARK (5184.MY)$: Cypark Resources Bhd, a green energy solutions group, registered a net loss of RM57.92 million for 4QFY2024 on revenue of RM56.32 million. There were no comparative figures as the group had changed its financial year end. Cypark said the loss stemmed from a RM46 million derecognition of deferred tax assets in certain entities within the group, following the assessment conducted in line with the MFRS112 Income Tax requirements, as well as administration costs, particularly higher professional fees.
$ASTINO (7162.MY)$: Astino Bhd reported a 36.7% decline in net profit to RM8.04 million in 3QFY2024 from RM12.71 million a year earlier, due to a decline in sales and profit margin. Earnings per share dropped to 1.65 sen compared with 2.59 sen in 3QFY2023. No dividend was declared for the quarter under review. Quarterly revenue declined 13% year-on-year to RM135.6 million from RM155.9 million, due to fewer business days as the Lunar New Year and Hari Raya Puasa occurred during this period. Its quarterly revenue was the lowest in two years, since 1QFY2022, when it posted RM136.5 million.
$HIAPTEK (5072.MY)$: Hiap Teck Venture Bhd reported a threefold surge in net profit to RM46.82 million for the third quarter ended April 30, 2024 (3QFY2024), from RM15.03 million a year earlier, driven by a higher share of profit from a joint venture (JV) company. Earnings per share for 3QFY2024 improved to 2.69 sen, from 0.86 sen previously. Revenue increased by 7.14% to RM399.68 million from RM373.03 million on higher sales volumes, despite lower average selling prices.
$UEMS (5148.MY)$: Property developer UEM Sunrise Bhd announced that it will file an appeal with the High Court after the Special Commissioners of Income Tax ruled in favour of the Inland Revenue Board (IRB) that the additional tax and penalty totalling RM73.84 million is to be maintained. On Oct 3, 2011, UEM Sunrise's indirect wholly owned subsidiary Bandar Nusajaya Development Sdn Bhd had received a notice of additional assessment from the IRB for additional tax and penalty for the year of assessment 2006, which resulted in an additional tax payable of RM73.84 million. UEM Sunrise said the amount was paid on Dec 5, 2016.
$COASTAL (5071.MY)$: Oil and gas services provider Coastal Contracts Bhd announced that its Singapore-based subsidiary Elite Point Pte Ltd has secured a one-year extension of its charter contract for a liftboat worth RM64.1 million. The extension is expected to contribute positively to the earnings and net assets of the company during the contract tenure. Coastal Contracts ventured into the chartering of liftboats in February 2021 via the acquisition of Elite Point. The liftboats are self-propelled, multifunctional, self-elevating platform-based vessels with large open decks to support various offshore maintenance and construction works.
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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