MY Morning Wrap | IJM Secures Contract to Design and Build Data Centre for Telekom Malaysia Subsidiary
Good morning mooers! Here are things you need to know about today's market:
●Nasdaq on Track for 18.6% First-Half Gain Thanks to Nvidia's Performance
●Anwar to Announce Rates of Civil Service Pay Hike Before Tabling of Budget 2025
●Malaysia to Position Itself at Forefront of Semiconductor Industry
●Stocks to watch: IJM, Poh Huat
-moomoo News MY
Wall Street Summary
The Nasdaq is on track for an 18.6% gain in the first half of the year, largely thanks to the strong performance of tech company Nvidia. Despite trading lower for most of the day, Nvidia closed up 0.25%. The $S&P 500 Index (.SPX.US)$ closed at 5,477.90, up 0.16%, and the $Nasdaq Composite Index (.IXIC.US)$ advanced 0.49%. The $Dow Jones Industrial Average (.DJI.US)$ was almost flat, up 0.04%.
Breaking News
Anwar to Announce Rates of Civil Service Pay Hike Before Tabling of Budget 2025
Malaysian Prime Minister Datuk Seri Anwar Ibrahim has announced that the rates of civil servants' salary increase, to be implemented from December 2024, will be announced before the tabling of Budget 2025 in October. The review of the Public Service Remuneration System (SSPA) was undertaken by the unity government last year after the last review of the salary scheme was conducted in 2013. The civil servants will enjoy a salary hike of more than 13%, the highest increase in the nation's history. Anwar also reminded civil servants not to be swayed by political talks regarding the issue of the sale of Malaysia Airports Holdings Bhd (MAHB) shares, and to follow the development of the issue to know the truth and get the right picture.
Malaysia to Position Itself at Forefront of Semiconductor Industry
Malaysia's Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said that the initiative to elevate production up the value chain will position Malaysia at the forefront of the semiconductor industry. This move presents an opportunity for Malaysia to play a pivotal role in the global supply chain, especially amid the trade tensions between the US and China as companies are reconfiguring their supply chains. The Asia Pacific semiconductor market size was estimated at almost US$288 billion in 2023 and is forecast to reach US$612 billion by 2033, growing at a compound annual growth rate of 7.83% from 2024 to 2033. The global semiconductor industry is expected to reach US$1 trillion by 2030. Tengku Zafrul said the government is confident that with a strong foundation in the semiconductor industry, Malaysia can be a true semiconductor powerhouse not just in assembly, but also in innovation and design.
Stocks to Watch
$IJM (3336.MY)$: IJM Corp Bhd has secured a contract worth RM331.7 million to design and build a data centre for a subsidiary of Telekom Malaysia Bhd in Iskandar Puteri, Johor. The project, known as Block 2 of the Iskandar Puteri Data Centre, was secured from TM Technology Services Sdn Bhd via its wholly owned IJM Construction Sdn Bhd. Construction is set to begin in July 2024 and is expected to be completed by the third quarter of 2025.
$POHUAT (7088.MY)$: Poh Huat Resources Holdings Bhd reported a near 70% increase in its net profit for the second quarter ended April 30, 2024, driven by a gradual rise in orders from US customers for its Malaysian operations, primarily in the office segment. Its net profit rose to RM7.23 million, up 69.84% compared with RM4.26 million in the previous year's corresponding quarter, while revenue increased 13.74% to RM108.35 million from RM95.26 million. Poh Huat declared a second interim dividend of two sen per share, payable on July 23.
$SAMAIDEN (0223.MY)$: Samaiden Group Bhd has signed an agreement with Gruppe Lighting Solution Sdn Bhd to implement solar street lighting systems that incorporate solar panels, battery storage, and smart grid technologies. The collaboration extends to smart city projects that integrate solar street lights with Internet of Things (IoT) capabilities, which would significantly improve energy management and enhance urban services.
$ARREIT (5127.MY)$: AmanahRaya Real Estate Investment Trust (REIT) is selling its Contraves office building in Cyberjaya for RM42.5 million to 4X Software Sdn Bhd, a software provider that is buying the building for business expansion. The building, which AmanahRaya REIT has owned for almost eight years, is a four-storey purpose-built office building with one basement level. Sitting on a freehold land area of about 89,470 sq ft, the building is fully occupied as of May 31. AmanahRaya REIT is expecting to gain RM1.2 million from the proposed disposal, which should be completed by the first half of 2025.
$CNASIA (7986.MY)$: CN Asia Corp Bhd is set to become the largest shareholder of SMTrack Bhd with a 14.2% stake via a debt settlement exercise. The debt settlement involves SMTrack issuing 218 million new shares to pay off a sum of RM7.63 million owed by its wholly-owned subsidiary SMT Turbojet Resources Sdn Bhd to CN Asia's wholly-owned unit Southborn Capital Sdn Bhd at 3.5 sen per share. This represents a 10% discount to the five-day volume-weighted average market price of SMTrack shares of 3.89 sen on June 18.
$KUCHAI (2186.MY)$: Kuchai Development Bhd and Sungei Bagan Rubber Company have signed a supplemental letter to extend the cut-off date for the proposed disposal of Kuchai's assets and liabilities to Sungei Bagan in return for a 29.37% stake in the latter company by four months to October 29. The reason for the extension was not specified. The extension includes a further two-month automatic extension to December 29 if the conditions precedent in the deal are not fulfilled or waived. These conditions include obtaining shareholder approval, satisfaction with the results of due diligence, and obtaining all necessary consent and approvals for the disposal of the assets and liabilities.
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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