MY Morning Wrap | Hibiscus Petroleum to Write Off RM27 Million for South Furious Merah Exploration Well

Last Friday, the $Nasdaq Composite Index(.IXIC.US)$ continued its upward trajectory to reach a new all-time high, supported by the strong performance of tech stocks and semiconductor makers. The index closed 1.1% higher at 16,274.94. In addition, the $S&P 500 Index(.SPX.US)$ rose 0.80% to 5,137.08, marking its first close above 5,100, while the $Dow Jones Industrial Average(.DJI.US)$ increased 0.2% to 39,087.38. Among the Magnificent Seven stocks that drove the market higher last year, $NVIDIA(NVDA.US)$ emerged as the top performer, with its shares rising 4%, pushing its market capitalisation above $2tn for the first time ever. As the manufacturer of the most powerful chips used in artificial intelligence, Nvidia has continued to break its own records this year.

Bursa Malaysia is likely to remain in consolidation mode with a slight positive bias next week, supported by decent corporate earnings and attractive valuations, according to Rakuten Trade's equity research VP, Thong Pak Leng. The $FTSE Bursa Malaysia KLCI Index(.KLSE.MY)$ has been consolidating within a range of 1,542 to 1,558, but has maintained its position above all Exponential Moving Averages, indicating potential for upward movement. Thong anticipates the index to rebound and hover within the range of 1,540 to 1,570 next week, with immediate support at 1,534, followed by 1,520. The Financial Services, Energy, Industrial Products and Services, and Plantation sectors all saw declines last week.

$HIBISCS(5199.MY)$: Hibiscus Petroleum Bhd plans to write off RM27 million in capital cost estimates for its South Furious Merah exploration well after an initial assessment found that the hydrocarbon volumes may not achieve economically viable thresholds. The well is one of three in Hibiscus' drilling programme by its subsidiary, SEA Hibiscus Sdn Bhd, to evaluate near-field exploration locations within the boundaries of the 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract.

$YNHPROP(3158.MY)$: In an effort to fulfill its oversight and fiduciary duties, YNH Property Bhd has appointed Khong Kam Hou, its senior independent, non-executive director, as the chairman of its audit committee. Khong will lead a three-member team to help assess the group's processes relating to risks, oversee financial reporting, and evaluate internal and external audit processes. This move comes after YNH Property Bhd faced criticism for delayed disclosures and lapses in governance.

$KUB(6874.MY)$: KUB Agro Holdings, a wholly owned subsidiary of KUB Malaysia Bhd, is set to acquire the remaining 40% equity interest in KUB Sepadu Sdn Bhd (KUBS) from Medan Sepadu Sdn Bhd and Lembaga Amanah Kebajikan Kaum Melanau Sarawak for RM60 million. The acquisition will allow KUB Agro Holdings to regain control of KUBS, which is currently under liquidation.

$JETSON(9083.MY)$: Kumpulan Jetson Bhd has filed a lawsuit against 10 individuals who attempted to call for an extraordinary general meeting to remove the entire board of directors of the construction group. The company is seeking a declaration that the shareholders' notices to remove the directors are defective and inconsistent with the law, as well as damages for alleged defamation resulting from the notices. Kumpulan Jetson claims that the shareholders have damaged the group's image, reputation, and interests.

$PEKAT(0233.MY)$: Pekat Group Bhd is selling an industrial freehold land, measuring 12,813.89 sq m, for RM21 million cash, to realise the value of the unused property, with proceeds from the sale to be used for working capital. The proposed disposal is expected to net the group a gain of about RM1.82 million, based on the net book value of the freehold plot of RM17.82 million as of end-2023, after deducting estimated expenses for the sale and an estimated real property gains tax of RM630,000. Besides working capital, it will use the proceeds to repay the land's financing.