MY Morning Wrap | Johor Plantations Group's Net Profit More Than Doubles in Q1FY2024
Good morning mooers! Here are things you need to know about today's market:
●S&P 500, Dow Jones, and Nasdaq Composite Indexes Rise on Second Day of Second Half
●Malaysia's Government Bond Supply May Slow in Second Half of 2024
●Malaysia Urgently Needs to Reform Fuel Subsidies to Meet Deficit Target, Says Citigroup
●Stocks to watch: Pertama Digital, KNM, AEON Co
-moomoo News MY
Wall Street Summary
On the second day of the second half, the $S&P 500 Index (.SPX.US)$ climbed 0.62%, the $Dow Jones Industrial Average (.DJI.US)$ climbed 0.41%, and the $Nasdaq Composite Index (.IXIC.US)$ climbed 0.84% just after the close on Tuesday.
Breaking News
Malaysia's Government Bond Supply May Slow in Second Half of 2024
Malaysia's government bond supply may slow in the second half of 2024 amid smaller deficit financing requirements and strong investor demand, causing a potential "slightly higher issuance," according to analysts. Gross issuance for July-December is estimated to be between RM83.5 billion to RM85.5 billion, compared to RM94.5 billion in the first half of 2024. The government aims to narrow its budget gap to 4.3% from 5% last year. Despite the ongoing budget consolidation, fiscal spending is expected to remain intact in Malaysia, with infrastructure projects spurring the supply of both government and private sector bonds. Demand is expected to remain robust while yields may have peaked along with global and domestic policy rates.
Malaysia Urgently Needs to Reform Fuel Subsidies to Meet Deficit Target, Says Citigroup
Malaysia needs to reform fuel subsidies urgently to meet its 2024 deficit target, according to Citigroup's chief Malaysian economist Wei Zheng Kit. The government may start to roll back blanket subsidies for the RON95 fuel this month, after shifting towards targeted diesel assistance in June. Prime Minister Datuk Seri Anwar Ibrahim aims to lower Malaysia's budget deficit to 4.3% of GDP from 5% last year by phasing out broad subsidies. The government may see additional savings of RM3 billion to RM4 billion this year if they implement a hike of 30 sen per litre for RON95 in July, according to Citigroup.
Stocks to Watch
$JPG (5323.MY)$: Johor Plantations Group Bhd's net profit for the first quarter ended March 31, 2024 more than doubled to RM49.97 million from RM23.4 million a year earlier. This was due to the increase in revenue from selling crude palm oil and palm kernel, as revenue for the quarter rose to RM294.91 million versus RM251.98 million previously. Earnings per share also increased to 2.45 sen from 1.3 sen. The company is set to be listed on the Main Market.
$PERTAMA (8532.MY)$: Pertama Digital Bhd's subsidiary, Dapat Vista (M) Sdn Bhd, has secured a contract to provide public online digital identity onboarding registration services for the national digital ID platform, MyDigital ID. The contract was awarded by My Digital ID Sdn Bhd and is for a duration of four months, with an option to extend for an additional three months. While the contract value was not disclosed, Dapat is responsible for user support and the continuous availability of the service.
$KNM (7164.MY)$: KNM Group Bhd is considering fresh options to sell its Italian subsidiary, FBM Hudson Italiana SpA, following a third failed attempt. The company has received offers of purchase from other interested parties and is currently evaluating its options. The announcement follows the collapse of its deal to sell FBMHI to two buyers for €16.5 million. The initial agreement with these buyers expired on June 30. KNM Group is a manufacturer of process equipment, process systems, and pressure vessels for the oil and gas, petrochemicals, chemicals, and other industries.
$AEON (6599.MY)$: AEON Co (M) Bhd is planning to raise up to RM2 billion via two separate sukuk programmes to fund its capital expenditure, working capital, investments, and refinance existing debts. The company has lodged the necessary information and documents with the Securities Commission Malaysia for the two sukuk wakalah programmes, which will have a combined limit of up to RM2 billion in nominal value. The Islamic Commercial Papers Programme will run for seven years, while the Islamic Medium-Term Note Programme will have a perpetual tenure. AEON is a department store and mall operator.
$MALTON (6181.MY)$: Malton Bhd is acquiring 30.17 acres of freehold land in Genting Highlands from property developer Global Oriental Bhd for RM65 million in cash. The land will be used to build serviced apartments and luxury villas, with an estimated gross development value of RM1.29 billion. The acquisition is being made from Global Oriental's subsidiary Sering Manis Sdn Bhd. In a separate filing, Global Oriental said it has agreed to share a portion of infrastructure costs, totalling RM26 million, which will be paid progressively based on work certificates for the agreed infrastructure that is scheduled for completion within 42 months.
$GCAP (7676.MY)$: G Capital Bhd has cancelled its planned rights issue of redeemable convertible unsecured loan stocks due to unfavourable market conditions. However, the company intends to explore alternative funding options for its mini-hydropower plant projects in Perak. The cancellation of the rights issue is not expected to have any material effect on GCAP's earnings or net assets. Separately, the company announced that its 70%-owned unit, Solarcity Malaysia Sdn Bhd, has successfully installed and commenced operations of a 2,000 kWP solar photovoltaic electric power generation system in Bukit Mertajam, Penang.
$JSB (5673.MY)$: Jentayu Sustainables Bhd's shares fell as much as 26% to an intraday low of 62 sen, the lowest since January 23, 2024, prompting Bursa Securities to suspend intraday short selling of the counter. The stock ended the day at 70 sen, down 14 sen or 16.7% from the previous day's close, giving the loss-making group a market capitalization of RM308.97 million. The company is involved in renewable energy, healthcare, and trading of building materials. The group's warrants also fell 19% to close at 23.5 sen. Over 21 million shares were traded during the day.
$UUE (0310.MY)$: UUE Holdings Bhd made a strong debut on the ACE Market of Bursa Malaysia, with its share price surging 189.58% or 45.5 sen to settle at 69.5 sen, compared to its IPO price of 24 sen. The stock opened 175% higher at 66 sen and reached its highest at 70.5 sen, while its intraday low was 61 sen. The company's market capitalization stands at RM422.76 million, four times higher than its expected market capitalization of RM146 million during its prospectus launch. The trading volume rose to 212.32 million, making it the most active stock and biggest gainer on Bursa.
Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The EDGE
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