MY Morning Wrap | Malaysia Airports Holdings Eyes IJM Consortium for Aerotrain Revamp
Good morning mooers! Here are things you need to know about today's market:
●US stocks retreat slightly but seal strong annual performance on the final trading day of 2023
●Local economy defies global downturn with projected growth
●Malaysia tops global islamic economy indicator for 10th year running
●Healthcare sector resilience amid inflation to drive investor interest in 2024
●Stocks to watch: Maxis, Malaysia Airports
-moomoo News MY
Wall Street Summary
On the final trading day of 2023, US stocks experienced a minor pullback, slightly denting the robust annual gains propelled by the surge in the "Magnificent Seven" and semiconductor sectors. The $S&P 500 Index(.SPX.US$ ended the year at 4,769.83, narrowly missing its early 2022 record close, as investors earlier anticipated interest rate cuts by the Fed in early 2024. Meanwhile, the $Dow Jones Industrial Average(.DJI.US$ hovered near its peak, and the $Nasdaq Composite Index(.IXIC.US$, despite a slight dip, culminated the year with a staggering 43.4% annual gain, marking its most significant yearly increase since 2020.
Breaking News
Local economy defies global downturn with projected growth
Amid a bleak global economic forecast for 2024, the local economy stands as an outlier, set to defy the trend with anticipated growth that outpaces major economies. Official estimates suggest a growth of 4% to 5% this year, with projections for 2024 ranging from 4.2% to 5%. This comes as the International Monetary Fund (IMF) maintains a 3% global real GDP growth forecast for 2023 but reduces its 2024 projection to 2.9%, highlighting the local economy's resilience in a challenging global landscape.
Malaysia tops global islamic economy indicator for 10th year running
Malaysia continues to lead the Global Islamic Economy Indicator (GIEI), marking a decade of dominance, as reported by the Halal Development Corp Bhd (HDC). In the latest 2023 rankings, Malaysia stays ahead of Saudi Arabia, Indonesia, and the UAE. According to the 2023/2024 State of the Global Islamic Economy report, the nation has achieved first place in Islamic finance, halal food, and the media and recreation sectors. Additionally, it has earned a second-place finish in modest fashion, third in pharmaceuticals, and fifth in tourism, showcasing its comprehensive strength in the Islamic economy.
Healthcare sector resilience amid inflation to drive investor interest in 2024
The healthcare sector's capacity to sustain earnings during high inflation and economic downturns is expected to be a pivotal focus in 2024, attracting investor interest due to its robust demand and reliable performance relative to other sectors. Affin Hwang Investment Bank Research commends the sector’s resilience and anticipates earnings growth across its coverage, with the exception of Apex Healthcare Bhd. This growth is projected to stem from increased hospital inpatient volumes and enhanced contributions from contract manufacturing, although it will hinge on a range of influencing factors.
Stocks to Watch
$MAXIS(6012.MY$: Maxis Bhd has declared that one of its subsidiaries will pay a final settlement of RM73 million to the Inland Revenue Board for additional assessments and penalties for the 2016-2020 period. This resolution comes two years after the initial assessment of RM477 million was issued.
$AIRPORT(5014.MY$:Malaysia Airports Holdings is reportedly evaluating an IJM Corp Bhd-led consortium, inclusive of original contractors Pestech International Bhd and French firm Alstom, to resume the previously suspended aerotrain replacement project. The initiative, aiming to renew the 25-year-old service after a significant malfunction left 114 passengers stranded earlier this year, may soon restart following the disruption in August, as indicated by sources close to the situation.
$KPS(5843.MY$: Kumpulan Perangsang Selangor Bhd (KPS) is realigning its operations to adapt to broader industry trends of trade diversion and supply chain diversification. The company has initiated the voluntary winding-up of its China-based unit, Toyoplas Manufacturing (Shanghai) Co Ltd (TMS), while simultaneously bolstering its position in Vietnam with the opening of a new Toyoplas factory. This strategic move reflects KPS's proactive approach to navigating global trade dynamics.
$BJCORP(3395.MY$: Berjaya Corp Bhd (BCorp) is pursuing an extension beyond the December 31 deadline to finalize the share transfer of its waste management subsidiary, Berjaya Enviro Holdings Sdn Bhd (BEnviro), to Naza Corp Holdings Bhd. BEnviro has reached out to the Public Private Partnership Unit of the Prime Minister’s Department and Sustainable Energy Development Authority Malaysia (SEDA) for additional time until the required approval from the Energy Commission of Malaysia is secured.
$HARNLEN(7501.MY$: Harn Len Corp Bhd is set to purchase an aquaculture business that operates 30 ponds on 300 acres in Pekan, Pahang, from major shareholder Mohamed Nizam Jakel. The RM42.5 million acquisition will be completed via the issuance of 47.22 million new Harn Len shares, resulting in a 7.71% increase in the company's share capital and boosting Nizam's ownership to 12.8%. Additionally, Harn Len plans to issue Class A Islamic Redeemable Convertible Preference Shares (RCPS-i A) priced at 45 sen each.
$BINTAI(6998.MY$: Bintai Kinden Corp Bhd has negotiated an agreement to resolve a RM3 million debt with MBSB Bank Bhd, which will result in the bank retracting a lawsuit tied to Bintai Kinden’s default in March. Under the Conditional Relief Indulgence (CRI) agreement, Optimal Property Management Sdn Bhd (OPM), a wholly-owned subsidiary of Bintai Kinden, is granted a six-month reprieve with a monthly loan repayment plan of RM500,000. The company fell into PN17 status following a loan repayment default to MBSB on March 28, 2023.
$TAKAFUL(6139.MY$: Syarikat Takaful M Keluarga Bhd has declared an interim single-tier dividend of 14 sen per ordinary share for the financial year ending Dec 31, 2023, which will be paid on Feb 2, 2024. The total dividend payout amounts to RM117.22 million for the financial year. The declared dividend translates into a dividend yield of 3.8% based on the closing market price of the group's share of RM3.70 as at Dec 28, 2023.
$BHIC(8133.MY$: Boustead Heavy Industries Corp Bhd (BHIC) has received the nod from shareholders to proceed with a debt settlement proposal with three lenders and its 64.99% parent Boustead Holdings Bhd (BHB) totalling RM417 million. The partial debt settlement will see BHB's stake in BHIC raised to 72.38%, followed by Affin Bank Bhd (4.96%), MBSB Bank Bhd(4.92%) and AmBank Islamic Bhd (2.33%). They will also obtain preference shares in BHIC.
$KUCHAI(2186.MY$: Kuchai Development Bhd is set to consolidate assets linked to Kluang Rubber Company (M) Bhd (KRCB) by transferring RM275.47 million in assets and liabilities to Sungei Bagan Rubber Co (M) Bhd (Sg Bagan) in a share exchange arrangement. In return, Kuchai will acquire a 29.37% stake in Sg Bagan, which it plans to distribute to its shareholders, granting them direct stakes in Sg Bagan. This move follows a previous distribution of Kuchai's entire 26.51% holding in Sg Bagan in September 2022, marking a continued strategy to align the interests of the sister companies and their investors.
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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