MY Morning Wrap | Maxis and CelcomDigi Fulfill Conditions for Subscription of Stake in Digital Nasional
Good morning mooers! Here are things you need to know about today's market:
●S&P 500 and Nasdaq Retreat from Record Highs as Nvidia's Decline Weighs on Semiconductor Industry
●Johor Emerges as a Significant Participant in Southeast Asian Data Center Industry
●Malaysia's Potential Joining of BRICS Brings Opportunities and Challenges
●Stocks to watch: Maxis, CelcomDigi, TM, Genting
-moomoo News MY
Wall Street Summary
The S&P 500 and Nasdaq pulled back from record highs on Thursday as $NVIDIA (NVDA.US)$'s 3.5% decline weighed on the semiconductor industry, causing the chipmaker to lose its position as the most valuable company to Microsoft. The decline in the stock market was also driven by weak economic data, with weekly jobless claims rising more than expected and slower home construction providing little relief to high housing prices that are adding upward pressure to inflation. The $S&P 500 Index (.SPX.US)$ fell 0.25% to 5473.17, while the $Nasdaq Composite Index (.IXIC.US)$ declined 0.79% to 17721.59. The $Dow Jones Industrial Average (.DJI.US)$, however, closed 0.77% higher at 39134.76, bucking the downtrend.
Breaking News
Johor Emerges as a Significant Participant in Southeast Asian Data Center Industry
Johor is becoming a significant participant in the Southeast Asian data center industry, with nine completed data center projects and six under construction, providing a total capacity of nearly 1280 megawatts and 1490 megawatts, respectively. Another 30 projects are in different planning and approval stages, reflecting Johor's increasing attractiveness as a data center hub. Johor's strategic location, robust infrastructure, and investment-friendly policies by state and federal governments are driving its growth in the data center industry. Johor State Executive Councillor for Investment, Entrepreneurship, and Socio-Economic Development, Liang Teck Meng, announced that guidelines have been developed and a coordinating committee established to ensure that data centers prioritize the use of renewable energy and improve energy and water efficiency. The state government hopes to ensure that data centers comply with best practices in electricity and water efficiency and align with international industry standards.
Malaysia's Potential Joining of BRICS Brings Opportunities and Challenges
Economists from Alliance Investment Bank have highlighted the potential benefits of Malaysia joining BRICS, including increased trade and investment opportunities and strengthened strategic alliances. In addition, this move could support Malaysia's efforts to reduce reliance on the US dollar and enhance financial stability. However, before joining, careful consideration and strategic planning are necessary to ensure that Malaysia can leverage the greatest advantages while mitigating related risks.
Stocks to Watch
$MAXIS (6012.MY)$: Maxis and CelcomDigi have met the conditions precedent for their subscription of a 14% stake each in Digital Nasional, the state-owned 5G network. The two mobile network operators are now prepared to complete the share subscription agreement with the Minister of Finance (Incorporated) and DNB. U Mobile and YTL Communications have also met the conditions precedent in the agreement. The completion of the SSAs is expected by the end of June 2024 for all MNOs, except Telekom Malaysia, which has until August 21, 2024, to seek shareholders' approval in accordance with its governance requirements.
$GENTING (3182.MY)$: Genting has awarded a $1 billion contract to Wison New Energies for the construction of a floating liquefied natural gas (FLNG) facility in Teluk Bintuni, West Papua, Indonesia. The facility is expected to have an annual capacity of up to 1.2 million tonnes and is estimated to take 27 months to complete. The first drop of LNG is expected in the third quarter of 2026, making it the first FLNG facility in Indonesia and the 9th in the world.
Genting has proposed to acquire a 49% equity interest in SDIC Jineng Gas Power Generation, which is developing a gas-fired power plant with a capacity of up to 1,490 MW in ZhouShan, Zhejiang province, China. Genting is purchasing the equity interest from Jineng International Energy for 100 million yuan (RM64.87 million). Genting estimates that an additional pro-rata equity investment of 328 million yuan (RM212.8 million) will be required up to target commercial operation next year.
$PMETAL (8869.MY)$: Press Metal is planning to sell its entire 25% stake in PT Bintan Alumina Indonesia (PT BAI) in exchange for a 25.59% stake in Nanshan Aluminium International Holdings Ltd (NAIHL) worth US$329.8 million or RM1.55 billion. The deal is expected to take place ahead of NAIHL's listing on the Hong Kong stock exchange. Press Metal acquired the stake in PT BAI in 2020 to secure a stable supply of alumina for its smelting operations and reduce reliance on third-party suppliers. NAIHL currently owns 72.7% of PT BAI.
$WCT (9679.MY)$: WCT Holdings has been awarded a contract worth RM249.74 million to construct additional lanes for the North-South Expressway expansion project from Yong Peng (North) to Senai (North) in Johor. The contract was awarded by Projek Lebuhraya Usahasama and is expected to further strengthen WCT's position in the construction industry. The largest stakeholder in WCT is property tycoon Tan Sri Desmond Lim Siew Choon's private vehicle Dominion Nexus, followed by Lim himself and Amanah Saham Nasional.
$HENGYUAN (4324.MY)$: Hengyuan Refining has shut down its long residue catalytic cracking unit (LRCCU) after discovering a leakage in the carbon monoxide boiler. The company warned that this will have a "material" financial impact as its refinery production will be affected. The LRCCU is used to convert high-boiling point hydrocarbon fractions of crude oil into high-value consumer petroleum products. Following the shutdown of the LRCCU, the hydrogen manufacturing unit and Euro4Mogas facility will also be shut down for inspection as part of regulatory requirements. The rest of the refinery plant is operating as usual.
$HEXCARE (7803.MY)$: Hextar Healthcare, formerly known as Rubberex Corp, has reported a fire at its factory in Bercham Industrial Park, Ipoh, Perak, on Monday with no casualties reported. The glove maker has yet to determine the full financial and operational impact due to damage caused by the fire.
$FSBM (9377.MY)$: FSBM Holdings will exit the stock exchange's Practice Note 17 (PN17) financially distressed category on Friday after regularising its financial condition and no longer triggering any criteria under Paragraph 2.1 of PN17 of the Main Market listing requirements of Bursa Malaysia. FSBM Holdings slipped into PN17 status on Dec 30, 2019, after its external auditor expressed a disclaimer of opinion on its audited financial statements for the financial year ended June 30, 2018, as it could not obtain enough appropriate evidence to provide a basis for an audit opinion.
$KAB (0193.MY)$:Kinergy Advancement is looking to raise up to RM66.23 million through a private placement to finance its renewable energy projects and repay its loans. The energy and engineering services firm, previously known as Kejuruteraan Asastera, had raised RM60.95 million from an earlier private placement.
$ECOWLD (8206.MY)$: Eco World Development Group has reported an 11.7% increase in net profit to RM70 million for its second quarter ended April 30, 2024, driven by higher revenue and cost savings in completed and near-completion development projects. The company's revenue also increased by 32.1% to RM555.76 million from RM420.82 million, due to higher contributions from active and newly launched phases of projects. The group declared an interim dividend of two sen per share, payable on July 19.
Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The EDGE
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