MY Morning Wrap | Gamuda JV Secures AUD 1.6bn Contract in Australia
Good morning mooers! Here are things you need to know about today's market:
●Market Retreat Continues: Semiconductor Sell-Off Drags Down S&P 500 and Nasdaq, Dow Stays Positive for the Week
●Economists see Malaysia's export growth strengthening in 2H2024
●Investment banks project positive exports growth for Malaysia this year
●Stocks to watch: Gamuda, Ancom Nylex, T7 Global
-moomoo News MY
Wall Street Summary
The stock market experienced a downturn for the second consecutive day on Thursday, following a significant sell-off in the semiconductor sector on Wednesday. By the end of trading at 4 pm ET, the $Dow Jones Industrial Average (.DJI.US)$ had seen the sharpest decline, dropping 1.19%. This downturn impacted the week's performance, with the $S&P 500 Index (.SPX.US)$ and $Nasdaq Composite Index (.IXIC.US)$ turning negative, falling 0.86% and 0.82%, respectively. Despite the pullback, the Dow managed to maintain a positive weekly trajectory. The recent market movements have underscored the volatility in tech stocks and the broader impact on major indices.
Breaking News
Economists see Malaysia's export growth strengthening in 2H2024
Economists predict that Malaysia's trade performance is likely to improve in H2 2024, buoyed by a resurgence in the global technology cycle, resilient economic growth in major economies, and potential increases in commodity prices. The electrical and electronic (E&E) products and commodity-based goods sectors are expected to benefit from brighter global growth prospects, according to RHB Bank’s Economic and Market Strategy report. The bank maintained its positive outlook for Malaysia's trade in 2024 despite slower-than-expected export growth in June. RHB said the exports of commodities, such as petroleum, and petroleum-based products, and non-metal mineral and metal products, are expected to gain from higher commodity prices. The country's trade surplus hit a nine-month high of MYR14.3bn ($3.4bn) in June.
Investment banks project positive exports growth for Malaysia this year
MIDF Amanah Investment Bank and RHB Investment Bank are projecting positive export growth for Malaysia in 2024. MIDF has maintained its projection that Malaysia's goods exports will recover and grow by 5.2%, while it has upgraded its import growth forecast to 11.2%. The bank said it foresees the turnaround in global electrical and electronics products (E&E) trade and the broad improvement in external demand to support the overall export recovery this year. RHB IB also maintains a positive outlook for Malaysia's trade in 2024, despite a slower-than-expected export growth in June. The bank expects export-oriented sectors such as E&E products and commodity-based goods to benefit from brighter global growth prospects.
Stocks to Watch
$GAMUDA (5398.BMS)$: Gamuda's joint venture with Alstom SA in Australia has secured a AUD 1.6bn ($1.2bn) contract to supply and maintain a new automatic train control system for Perth's suburban rail networks. Gamuda holds a 46% stake in the JV, while Alstom holds the remaining 54%. The project is expected to generate up to AUD 737m in revenue for Gamuda. Following the announcement, Gamuda's share price surged to a new record high, reaching an intraday high of MYR 8.49. The stock closed 0.36% higher at MYR 8.28, its highest closing price since the group was first listed in 1992.
$ANCOMNY (4758.BMS)$: Ancom Nylex Bhd has announced a slight increase in its net profit for the fourth quarter ending May 31, 2024, with a 1.44% rise to RM18.44 million, up from RM18.18 million in the same period last year. The company also saw a modest revenue growth of 1.82%, reaching RM486.96 million compared to RM478.25 million previously. This quarter's earnings contributed to Ancom Nylex achieving its highest ever annual net profit of RM81.47 million. Despite the economic challenges, Ancom Nylex is maintaining its interim dividend payout at one sen per share, consistent with the previous year's distribution. Looking ahead, the company is focusing on risk management in light of ongoing geopolitical tensions that could affect business costs and is actively seeking further opportunities to expand its operations.
$T7GLOBAL (7228.BMS)$: T7 Global Bhd has announced a legal victory for its subsidiary, Tanjung Offshore Services Sdn Bhd, in its legal battle against VME Process Systems Malaysia Sdn Bhd. The Malaysian High Court has decreed that the joint settlement agreement and the intellectual property protection agreement, both signed in 2020, are null and void. Consequently, VME is obliged to reimburse Tanjung Offshore the sum of RM22.88 million, equivalent to approximately US$5.5 million as claimed. The decision marks a significant win for T7 Global, although the company's previous disclosures have not provided explicit clarity on the initial reasons for the payment that is now subject to refund.
$HAILY (0237.BMS)$: Haily Group Bhd, through its wholly-owned subsidiary Haily Construction Sdn Bhd, has been awarded a contract worth RM76.65 million to build 171 link houses in the Kempas Baru area of Johor Bahru. The contract was formalized with a letter of award from Razin Architects Sdn Bhd, representing the project's developer, Kews Senibong Sdn Bhd. The construction is planned to proceed in two stages, with the first phase beginning on July 16 and anticipated completion by October 15, 2025. The subsequent phase is scheduled to commence within nine months following the start of the first phase and aims to be finalized in 22 months. This new project represents a significant addition to Haily Group's construction portfolio.
$ARREIT (5127.BMS)$: AmanahRaya Real Estate Investment Trust has successfully secured a new tenant, Alfa International College Sdn Bhd, for its property located in Subang Jaya. This long-term lease agreement, which stretches over an 18-year period, is based on a triple net lease structure and will take effect immediately following the expiration of the current lease with SEGi College on February 28. Alfa International College plans to commence its educational operations by the fourth quarter of the year. The deal is set to provide AmanahRaya REIT with a stable and predictable revenue stream and includes provisions for positive rental escalations every three years, ensuring a potentially growing income from the property.
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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Paul Anthony : very helpful thanks
Paul Anthony : very helpful thanks
built different : up it goes
104423482 : #Malaysis KLCI Index Soars: Warning up for a bull market. ??
Paul Anthony : don't forget now I'm hosnley don't support community Maybank from now