MY Morning Wrap | Malaysia's Fiscal Deficit Likely to Be Lower in 2023 -- CGS-CIMB
Good morning mooers! Here are things you need to know about today's market:
●the S&P 500 fell modestly for a second consecutive week
●Malaysia's Fiscal Deficit Likely to Be Lower in 2023 -- CGS-CIMB
●Malaysia Secures RM5.2 Bil Investment Commitments in Digital Economy From China and Singapore — Fahmi
●Stocks to watch: PPB Group, Top Glove
-moomoo News MY
Wall Street Summary
The summer stock market rally has started to cool after the S&P 500 fell modestly for a second consecutive week.
The tech-heavy $Nasdaq Composite Index (.IXIC.US)$ was Friday's worst major index performer, falling 0.7% to a one-month low. The $S&P 500 Index (.SPX.US)$ slid 0.1% and the $Dow Jones Industrial Average (.DJI.US)$ added 0.3%.
Breaking News
Malaysia's Fiscal Deficit Likely to Be Lower in 2023 -- CGS-CIMB
Malaysia is likely able to lower its fiscal deficit compared to the 5.0 per cent of gross domestic product (GDP) projected this year, given better fiscal data recorded in June. CGS-CIMB Securities Sdn Bhd said the government revenue collection up to June was slightly better than past trends despite expenditure data so far remaining in line. "As a result, the fiscal deficit was recorded at 2.2 per cent of GDP for the first half of 2023 (1H 2023). "If we extrapolate the trend, this may indicate the possibility of the fiscal deficit coming in better than the government's target of 5.0 per cent of GDP for this year," it said in a research note today. Nevertheless, CGS-CIMB said while the year-to-date (YTD) fiscal performance was certainly positive, it cautioned against being too optimistic.
Malaysia Secures RM5.2 Bil Investment Commitments in Digital Economy From China and Singapore — Fahmi
Malaysia has secured RM5.2 billion worth of investment commitments in the digital economy sector from China and Singapore, Communications and Digital Minister Fahmi Fadzil said. In a post on Facebook, he said that the RM3 billion worth of investment was obtained from China and RM2.2 billion from Singapore. “I would like to announce some good news. Malaysia has secured investment commitments totalling RM5.2 billion from China and Singapore,” he said.
Stocks to Watch
$PPB (4065.MY)$: PPB Group Bhd is disposing of its 51%-owned indirect subsidiary in Indonesia’s PT Pundi Kencana for 290.7 billion rupiah (RM87.5 million) cash in a related-party transaction. The decision was made after considering that the flour-milling business in Indonesia is highly competitive, according to PPB’s filing with Bursa Malaysia on Friday. PPB’s indirect unit Mantap Aman Sdn Bhd signed a conditional sale and purchase agreement with PT Sentratama Niaga Indonesia (SNI) and PT Wilmar Nabati Indonesia (WINA) for the proposed disposal on Friday. SNI and WINA are wholly owned by Singapore-listed agribusiness Wilmar International Ltd, in which PPB has an 18.78% stake.
$TOPGLOV (7113.MY)$: Top Glove Corp Bhd has been dropped as a constituent for the MSCI Global Standard Indexes which will take place as of the close of Aug 31, 2023. With the deletion of Top Glove, there are 32 Malaysian securities remaining on the list.
$SFPTECH (0251.MY)$: SFP Tech Holdings Bhd's net profit for the second quarter ended June 30, 2023 (2QFY2023) rose 63.23% to RM10.63 million from RM6.51 million a year ago, attributable to increased revenue and reduced administrative expenses due to the absence of non-recurring initial public offering (IPO) costs incurred during the same period last year. Revenue for the quarter gained 74.37% to RM36.44 million from RM20.90 million a year earlier, driven by increased sales in the mechanical assembly segment amid recurring orders from new customers in Malaysia. Despite the higher profit, the group declared a lower interim dividend of 0.2 sen per share in the current quarter compared with 0.5 sen previously. Payment of the group's latest dividend falls on Sept 18, 2023.
$MI (5286.MY)$: Mi Technovation Bhd saw its net profit for the second quarter ended June 30, 2023 (2QFY2023) rise 21.8% to RM22.73 million from RM18.67 million a year earlier, mainly underpinned by favourable foreign currency exchange. However, its quarterly revenue dipped 10.18% to RM84.05 million from RM93.58 million in the corresponding quarter of the preceding year, attributed to lower sales from its semiconductor material business unit (SMBU) which saw its segmental revenue contract 18.7% year-on-year (y-o-y) to RM42.8 million compared with RM52.7 million the year before, owing to overstock issues at key customers that caused slower demand. The SMBU segment contributed 50.9% of the group’s total revenue. It also declared a dividend of two sen for the quarter under review, payable on Sept 11.
$PERTAMA (8532.MY)$: Pertama Digital Bhd said it is not proceeding with the placement of its shares to Australia-based Macquarie Bank Ltd to raise gross proceeds of up to RM87.8 million. It had in March inked a subscription agreement for Macquarie Bank to subscribe up to 43 million new shares of the group, representing 10% of Pertama Digital’s share base of 433.36 million shares at that time.
$SLVEST (0215.MY)$: Solarvest Holdings Bhd has set up a new unit, Solarvest (Taiwan) Corp Ltd (STCL), to explore clean energy project opportunities in Taiwan. It said it had an active pipeline of projects in the republic, supported by 200 megawatt peak (MWp) of clean energy project opportunities. Solarvest executive director and group chief executive officer Davis Chong Chun Shiong said: “Taiwan presents a promising landscape for Solarvest's expansion, driven by its ambition to achieve 30 gigawatts (GW) of solar energy by 2030, and 20.7GW of wind energy by 2035.” He added: “Currently, Taiwan's solar energy generation stands at around 11GW, while wind energy production is at 6GW, revealing tremendous potential for our group to further advance Taiwan's renewable energy ambitions.”
$PHARMA (7081.MY)$: Pharmaniaga Bhd's net profit more than doubled to RM1.96 million or 0.15 sen per share for the second quarter ended June 30, 2023 (2QFY2023), compared with RM722,000 or 0.06 sen per share a year earlier. Quarterly revenue grew 11.51% to RM848.73 million from RM761.1 million a year ago. The Practice Note 17 group said the better performance for the quarter under review was driven by higher sales in both the non-concession segment and operations in Indonesia. However, the group’s net profit dropped 25.94% from RM2.65 million quarter-on-quarter (q-o-q), compared with 1QFY2023, amid lower contributions from its concession business with the Ministry of Health (MOH) during the festive season. Revenue slipped 3.6% q-o-q from RM880.45 million.
$CNERGEN (0246.MY)$: After spending over a year listed on Bursa Malaysia's ACE Market, electronic manufacturing solutions provider Cnergenz Bhd is eyeing a transfer to the Main Market. The transfer will enhance the company’s credibility and reputation to better reflect its existing institutional shareholding base as well as accord it greater recognition and appeal among investors, it said. It was listed on the ACE Market back in May 2022 at an initial public offering price of 58 sen.
$MEDIAC (5090.MY)$: Media Chinese International Ltd said losses attributable to owners of the company may widen to between US$2 million (RM9.17 million) and US$3 million for the first quarter ended June 30, 2023 (1QFY2024), from US$300,000 a year earlier. This is mainly due to the absence of one-off government grants and subsidies of US$1.4 million recognised in 1QFY2023, and lower turnover from the publishing and printing segment for the quarter under review.
$WTK (4243.MY)$: WTK Holdings Bhd has proposed to buy a stake in an oil palm plantation company in Sarawak for RM132.2 million to expand its oil palm presence in the state. In a filing with the local bourse on Friday (Aug 11), WTK said its unit BioFarm Venture Sdn Bhd had entered into share sale agreement with Ocarina Development Sdn Bhd (in liquidation) to acquire a 70% stake or 9.8 million shares in Durafarm Sdn Bhd. Durafarm is engaged in the business of planting and management of oil palm plantations in Betong and Sri Aman, Sarawak with the principal market for the sale of fresh fruit bunches solely in Sarawak.
$HANDAL (7253.MY)$: Singapore-based Deepetro Offshore Brokers Pte Ltd has ceased to be a substantial shareholder of Handal Energy Bhd a week after attaining the status. Deepetro disposed of 30.2 million shares or a 11.34% stake in Handal on Wednesday (Aug 9), slashing its stake to 0.1% or 264,619 shares. Deepetro had emerged as a substantial shareholder in Handal on Aug 2 with an 11.42% stake or 30.46 million shares, after acquiring shares in the oil and gas integrated services provider from the open market and converting irredeemable convertible preference shares into new ordinary shares.
Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The EDGE
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101607476 : How about the BSKL market this morning.
Any wrap up yet..