MY Morning Wrap | JP Morgan Turns Bullish on Glove Sector Amid Demand Resurgence
Good morning mooers! Here are things you need to know about today's market:
●U.S. stocks experience modest gains, pushing the S&P 500 towards a potential record-breaking close
●JP Morgan turns bullish on glove sector amid demand resurgence
●Malaysian trade poised for growth and innovation
●Steady low inflation predicted for Malaysia in early 2024
●Stocks to watch: Kim Loong Resources, Crescendo Corp
-moomoo News MY
Wall Street Summary
U.S. equities saw a slight uptick on Thursday, nudging $S&P 500 Index (.SPX.US)$ tantalizingly close to a new record close. The S&P 500 inched up by 2 points to 4,783, while the $Dow Jones Industrial Average (.DJI.US)$ advanced 53 points to 37,710. The $Nasdaq Composite Index (.IXIC.US)$, however, dipped slightly by 4 points to 15,095. As the year's second-to-last trading session kicked off, the major U.S. indices touched notable highs, with investors keenly observing whether the S&P 500 would secure a new record close in the final moments of 2023.
Breaking News
JP Morgan turns bullish on glove sector amid demand resurgence
The glove sector is witnessing a demand rebound and ASP stabilization, prompting JP Morgan to upgrade the industry forecast to "selectively overweight." The bank favors Hartalega and Kossan, projecting continued restocking and growth into 2024-2025. With Chinese producers at full capacity, Malaysian and Thai manufacturers are expected to gain. JP Morgan has revised its valuation approach and target prices for key players in recognition of the sector's return to profitability.
Malaysian trade poised for growth and innovation
The Finance Ministry predicts a 5% recovery in Malaysia's trade for 2024, with exports and imports growing by 5.1% and 4.9% respectively. Echoing this optimism, the Export Excellence Awards (EEA) 2023 revealed a trend toward innovation and sustainability among Malaysian exporters, in line with the government's industry and investment strategies. As the global focus on ESG grows, local companies are advised to embrace digital and sustainable practices to enhance their global competitiveness. The EEA Gala Night in January 2024 will honor the achievements of standout exporters, recognizing their role in Malaysia's trade resilience and global presence.
Steady low inflation predicted for Malaysia in early 2024
Malaysia is set to maintain low inflation into the first half of 2024, supported by stable domestic supply chains and interest rates, along with normalized commodity prices. MIDF Research highlights risks including a weak ringgit and potential fuel price hikes. The nation's PPI has seen a consistent drop, indicating continued deflationary trends in manufacturing costs.
Stocks to Watch
$KMLOONG (5027.MY)$: For the third quarter ending October 31, 2023, Kim Loong Resources Bhd's net profit increased by 31% to RM47.97 million, up from RM36.74 million the previous year, buoyed by higher production of fresh fruit bunches and increased crude palm oil sales. The company also reported an 11% increase in quarterly revenue, reaching RM448.68 million compared to RM402.41 million in the same quarter last year.
$CRESNDO (6718.MY)$: Crescendo Corp Bhd's net profit soared to RM17.97 million in the third quarter ending October 31, 2023, marking a 270% increase from RM4.86 million a year prior, thanks to robust property sales and a particularly profitable industrial land transaction. The company's quarterly revenue nearly doubled, jumping 98.56% to RM101.79 million from RM51.26 million, driven by significant gains in its property development and manufacturing and trading operations.
$ANALABS (7083.MY)$: Analabs Resources Bhd reported a net profit of RM13.04 million for Q2 ending October 31, 2023, attributed to a stronger manufacturing segment, enhanced cost management, and higher dividends from its share investments. The company's quarterly revenue rose by 25.5% to RM44.87 million, fueled by increased sales of melamine-faced chipboards. The revenue for its investment holding and property letting division saw a significant 70.1% jump to RM7.8 million, largely due to greater dividends from its investments in shares.
$UMS (7137.MY)$: UMS Holdings Bhd has sold its entire 45.13% interest in MKS Sdn Bhd to major shareholder NGT Holdings Sdn Bhd for RM6.11 million, a move by its subsidiary Aqua Terra Union Oilfield Supply that is expected to yield a RM5.4 million gain. This sale represents a significant return on the initial investment of RM714,802. Despite adjustments due to the pandemic, UMS has maintained its reputation as a reliable dividend provider.
$ARBB (7181.MY)$: Datuk Seri Liew Kok Leong has resigned as ARB Bhd's executive chairman to pursue other interests, effective immediately. His departure comes shortly after his appointment on October 11, following the resignation of former chairman Khor Ben Jin. Liew, who joined the board in 2018, holds a 22.52% stake in the company, combining direct and indirect shareholdings.
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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