MY Morning Wrap | Genting Malaysia Bolsters Empire Resorts with US$100 Million Infusion
Good morning mooers! Here are things you need to know about today's market:
●U.S. stock indexes rise as S&P 500 approaches record high ahead of inflation report
●Bursa Malaysia opens lower amidst US inflation data awaited
●Singapore and Malaysia PMs to mark progress on Johor-Singapore rail link
●Malaysia pushes for domestic tourism growth with strategic partnerships and regulatory measures
●Stocks to watch: Genting Malaysia, Public Bank
-moomoo News MY
Wall Street Summary
On Wednesday afternoon, U.S. stock indexes saw gains, with the $S&P 500 Index (.SPX.US)$ nearing its previous all-time high of 4,796.56 from two years ago, just ten points shy at 4,783, in anticipation of the December inflation report. The $Dow Jones Industrial Average (.DJI.US)$ climbed 0.45%, standing at 37,695, while the $Nasdaq Composite Index (.IXIC.US)$ appreciated by 0.75% to 14,969. The upcoming inflation data is expected to provide insights into the potential easing of the Federal Reserve's tight monetary policy that has been in place for nearly two years.
Breaking News
Bursa Malaysia Opens Lower Amidst US Inflation Data Awaited
Bursa Malaysia broke its winning streak, opening lower today at 1,494.50, influenced by Wall Street's decline and anticipation of US CPI data. The market was mixed, with a close tally of gainers and losers. While investors remain cautious ahead of key inflation reports, the FBM KLCI is expected to stay within the 1,495-1,505 range. Banking and energy stocks recorded minor adjustments, and sectoral performance varied with slight gains in Plantation and Property indices.
Singapore and Malaysia PMs to Mark Progress on Johor-Singapore Rail Link
Singapore's Prime Minister Lee Hsien Loong is set to visit Johor, Malaysia, on January 11 for a ceremony marking the Johor Bahru-Singapore Rapid Transit System Link project. Lee and Malaysia's PM Anwar Ibrahim will also oversee the signing of an MoU for a Johor-Singapore Special Economic Zone to enhance economic ties. The rail link, aiming to facilitate up to 10,000 passengers per hour, is anticipated to start service by the end of 2026.
Malaysia Pushes for Domestic Tourism Growth with Strategic Partnerships and Regulatory Measures
Promoting domestic tourism is pivotal for Malaysia's economic recovery, and the Malaysian Chinese Tourism Association (MCTA) Perak Chapter is collaborating with local authorities on Visit Perak Year 2024 to boost local attractions and gastronomy. To facilitate this, a call for government-imposed price caps on domestic flights during festivals has been made to encourage travel. Additionally, the Malaysian Tourism Federation (MTF) suggests promoting budget hotels to offer affordable travel packages, while addressing the issue of unregulated short-term rentals and OTAs through targeted legislation.
Stocks to Watch
$GENTING (3182.BMS)$: Genting Malaysia Bhd is set to invest an additional US$100 million into Empire Resorts Inc via its indirect wholly-owned subsidiary, raising its total investment in the company to about US$724.4 million. The investment will be made through the subscription of 1,000 Series M preferred stocks of Empire, which intends to use the funds for working capital and to settle a US$58 million bank loan. The Series M preferred stocks, maturing on December 31, 2038, are convertible into 100 million common Empire shares at US$1 each after the end of 2030.
$PBBANK (1295.BMS)$: Public Bank Bhd has retracted its legal action against Magma Group Bhd and its executive chairman Datuk Seri Ismail Farouk Abdullah following a dispute regarding the repayment of loans and overdrafts. The decision to withdraw the lawsuit was made after a Magma subsidiary made a payment to Public Bank and normalized the payment schedule for the facilities. During a case management on Tuesday, the High Court approved Public Bank's request to withdraw, allowing the bank the option to initiate the suit again if necessary.
$HEXTAR (5151.BMS)$: Hextar Capital Bhd, formerly known as Opcom Bhd, has finalized its purchase of a 49% share in Transgrid Ventures Sdn Bhd, an engineering, procurement, construction, and commissioning (EPCC) company in the power sector. The acquisition was conducted through a mix of cash and stock and signifies Hextar Capital's expansion into the power generation and transmission industry. The shares were acquired from Datin Seri M Saraswathy A/P Manikum. Transgrid, known for constructing electricity switching stations and substations, reported an unaudited net profit of RM3.87 million on revenue of RM40.19 million during the four months up to April 2023.
$NESTCON (0235.BMS)$: Nestcon Bhd has secured a construction contract valued at RM108 million from Exsim Avenue Sdn Bhd for a 37-storey mixed commercial development. This project, undertaken by its subsidiary Nestcon Builders Sdn Bhd, includes the construction of retail shops, 220 strata office units, 126 service apartment units, car parks, and related infrastructure. The project kicked off on January 15 and is expected to be completed by April 14, 2027, within a 39-month timeframe.
$IVORY (5175.BMS)$: Ivory Properties Group Bhd has finalized an agreement to sell a freehold land parcel measuring 1.22 acres in George Town, Penang, to Chin Hin Group Property Bhd for a sum of RM40 million. This land, which is a portion of the Penang Times Square development, is slated for the construction of a multi-storey residential complex. Following a binding term sheet signed on December 7 of the previous year, a subsidiary of the Ivory group will also be designated as the turnkey builder for this residential project.
$LSH (03047.BMS)$: Leader Steel Holdings Bhd's subsidiary, Ferronet Asia Sdn Bhd, is set to receive RM42.56 million in cash compensation following a compulsory land acquisition by the Klang Land Office. The 28,903 sq m property, part of Mukim Kapar in Klang, was claimed under the Land Acquisition Act 1960, with the payout covering severance damages and income loss.
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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