Malaysia Morning Wrap | Genting Malaysia's US Subsidiary Potentially Faces $600 Million Lawsuit

The market ratcheted higher Monday, leading to all-time highs and closing highs for two indexes. Despite Hong Kong stock pullbacks, $NVIDIA (NVDA.US)$ climbed to a record closing high, and record price right before the bell.

The market continued flat Monday morning, but outsized index climbers pushed the S&P 500 and Dow toward new record high closes.Just after the close, the $S&P 500 Index (.SPX.US)$ climbed 77 bps to a high and closing high, the $Dow Jones Industrial Average (.DJI.US)$ climbed 47 bps to a closing high, and the $Nasdaq Composite Index (.IXIC.US)$ climbed 0.87%.

$GENM (4715.MY)$ US branch has been implicated in a legal complaint by RAV Bahamas Ltd, lodged at the US District Court Southern District of Florida. Filed on October 7, the lawsuit names GenM's indirectly owned subsidiary, Genting Americas Inc, which operates Resorts World Bimini in the Bahamas. RAV Bahamas is claiming damages exceeding US$600 million (RM2.57 billion). Genting Americas refutes the allegations, labeling them as unfounded.

$MRDIY (5296.MY)$ principal investor, Bee Family Ltd, has divested 71.7 million shares, or a 0.76% interest, in the company for RM149.37 million through a direct business transaction. This sale reduces Bee Family’s ownership to 50.11% from 50.87%. Bee Family serves as the investment vehicle for Mr DIY's founder, Tan Yu Yeh, who retains 20 million direct shares, representing a 0.21% stake.

$CAPITALA (5099.MY)$ have endorsed the sale of its aviation division to $AAX (5238.MY)$ valued at approximately RM6.8 billion. The agreement received nearly unanimous support from stakeholders, with 99.97% in favor. A related resolution to distribute 73.33% of the AAX shares received from the sale to Capital A shareholders also passed with the same approval rate.

$SBAGAN (2569.MY)$ proposes an eight sen per share dividend for FY2024, comprising a two sen final dividend and a six sen bonus dividend. The dividends are scheduled for payment on January 2, 2025, with an ex-dividend date of December 12, 2024. Additionally, property developer $KUCHAI (2186.MY)$ has emerged as a significant shareholder following a recent asset and liability acquisition. Following its asset and liability disposal to Sungei Bagan, Kuchai Development has transitioned into a cash company, as confirmed by Bursa Securities. This change triggers Paragraph 8.03(1) of the Main Market listing requirements, indicating that over 70% of its consolidated assets are now in cash or short-term investments.

$HOHUP (5169.MY)$ 52.5% owned subsidiary, Golden Wave Sdn Bhd, is confronted with a winding-up petition from Eko Bina Sdn Bhd due to a payment disagreement related to a development project in Kota Kinabalu, Sabah. Following an adjudication last December, Eko Bina was awarded RM23.16 million. The court hearing is set for November 18.

$CHB (0291.MY)$ has won a RM62.5 million contract from $IJM (3336.MY)$ to provide mechanical and electrical services for a new semiconductor facility in Prai, Penang. The project, for a prominent US-based multinational, will be handled by Critical’s subsidiary, Critical M&E Engineering Sdn Bhd.

$FAJAR (7047.MY)$ has agreed to pay Penang Development Corp (PDC) RM111.45 million for 51.17 acres of land in Bandar Cassia, Batu Kawan. This purchase is part of a broader agreement to develop a 235.8-acre medical city, incorporating various health-focused facilities.

$BCB (6602.MY)$ has purchased 54.71 acres of land in Kluang, Johor, for RM31 million. The acquisition from Country Green Realty Sdn Bhd aims to develop residential and commercial units with a projected gross development value of RM245 million.

$EXSIMHB (1287.MY)$, now Exsim Hospitality Bhd, has secured a RM47.4 million subcontract for interior design services for an office property in Damansara Perdana. The award, given to its subsidiary, Exsim Concepto Sdn Bhd, involves outfitting 560 office units.