MY Morning Wrap | MHB Secures RM1.5 Billion Subcontract to Build Offshore Substation in Netherlands
Good morning mooers! Here are things you need to know about today's market:
●US Stocks Struggle to Gain as Investors Weigh Impact of Weakening Labor Market
●Analysts Cautiously Optimistic on Sustaining 1Q24 Momentum for Corporate Malaysia
●Foreign Investors Turn Net Sellers in Bursa Malaysia, Led by Technology Sector Sell-Off
●Stocks to watch: MHB, Kimlun, SNS
-moomoo News MY
Wall Street Summary
US stocks struggled to eke out a gain, managing to turn higher in the last 15 minutes of trading, as investors weigh the impact of a weakening labor market on companies' ability to sustain earnings growth.The $S&P 500 Index (.SPX.US)$ rose 0.15% to 5291.34, while the $Nasdaq Composite Index (.IXIC.US)$ gained 0.17% to 16857.05. The $Dow Jones Industrial Average (.DJI.US)$ rose 0.36% to 38711.29.
Breaking News
Analysts Cautiously Optimistic on Sustaining 1Q24 Momentum for Corporate Malaysia
Analysts are keeping a cautiously optimistic stance on whether Corporate Malaysia can sustain the momentum from a commendable first quarter of results. CIMB Securities reported that normalised net earnings had accelerated to 16.9% YoY in 1Q24, while several sectors had generated good growth, including automotive, construction, conglomerates, healthcare, real estate, telecommunications, and utilities. The tech sector, which was in the limelight, is also one of those seeing a turnaround from a low base. While there is likely to be consolidation in the next few weeks, it is not unreasonable for the index to hit 1,755 by the end of the year. Analysts are also anticipating that 2Q24 and 3Q24 would be more robust for the tech industry and the construction and property industries will largely be driven by newsflow and the order books of sector players.
Foreign Investors Turn Net Sellers in Bursa Malaysia, Led by Technology Sector Sell-Off
Foreign investors turned net sellers in Bursa Malaysia in the previous week to the tune of RM1.24 billion, snapping a five-week buying streak, according to MIDF Research. The technology sector led the sell-off by offshore funds with RM108.5 million net of sales, followed by the transport and logistics and property sectors with net sales of RM64.8 million and RM22.4 million, respectively. Meanwhile, sectors that led foreign inflows into Bursa Malaysia were financial services (RM800 million), utilities (RM250.7 million), and plantations (RM157.4 million). The sell-off by foreign investors in regional markets coincided with the release of a US inflation report, which indicated that the heightened pace of price increase might persist longer than anticipated.
Stocks to Watch
$MHB (5186.MY)$: Malaysia Marine and Heavy Engineering Holdings Bhd has secured a subcontract worth RM1.5 billion to build an offshore substation at a wind farm in the Netherlands. The fabrication works of the substation platform will begin in 2025 for 36 months, and the subcontract is expected to be completed by 2028. The project, named Nederwiek 1, will be MHB's second offshore wind project and involves the construction of a substation platform that receives power produced from the wind farm and steps it up before transmitting it onshore.
$KIMLUN (5171.MY)$: Kimlun Corp Bhd has secured a contract worth RM234.27 million for a high-rise residential development in Shah Alam, Selangor. The construction contract was awarded to its unit, Kimlun Sdn Bhd, by Saujana Development Sdn Bhd, and construction work is expected to be completed in the third quarter of 2026.
$SNS (0259.MY)$: SNS Network Technology Bhd has been appointed by VSTECS Bhd as an authorised retailer for Starlink's equipment in Malaysia. The deal will allow SNS to expand its information and communications technology product range to include Starlink satellite kits across its physical and online stores, as well as to its customers, which include government agencies and commercial enterprises. Starlink is a satellite internet constellation operated by Starlink Services LLC, a wholly owned subsidiary of Space Exploration Technologies Corp, and its broadband hardware kits come with the Starlink dish, base, router, power cable and Starlink cable.
$AEON (6599.MY)$: AEON Co (M) Bhd has signed a sale and purchase agreement with Real Attraction Sdn Bhd to acquire two pieces of land in Seremban for RM102.89 million to build a shopping mall. The proposed acquisition is in line with AEON's corporate strategy to develop its future retail business and expand in Seremban. The parcels of land are strategically located adjacent to the existing AEON Mall Seremban 2, which will enable AEON to construct a commercial shopping centre linked to the existing mall as part of its strategic expansion plans.
$CHHB (5738.MY)$: Country Heights Holdings Bhd has announced a tender process to attract investors for the Mines Waterfront Business Park and Mines International Exhibition and Convention Centre project development in Seri Kembangan, despite ongoing litigation with MBSB Bank over payment defaults. The property developer has authorised its chairman, Tan Sri Mohd Anwar Mohd Nor, to seek international tender submissions in US dollars, with Malaysian participation also welcomed, at the exchange rate of RM4.50 against the greenback. On May 24, the group said its unit Mines Waterfront Business Park Sdn Bhd had been sued by MBSB Bank, arising from a default in payment on an Islamic term financing facility and an Islamic bridging financing facility.
$OPTIMAX (0222.MY)$: Optimax Holdings Bhd announced that it has obtained a license from the Ministry of Health to offer aesthetic services at its new outlet, Neumax Clinix. Neumax Clinix, Optimax's first full-fledged aesthetic clinic, offers a comprehensive range of services, including cosmetic injections, laser treatments, and skin rejuvenation therapy.
$Intapp (INTA.US)$: Inta Bina Group Bhd announced that it has secured a RM111.98 million contract from a unit of Gamuda Bhd to build semi-detached houses. The contract period is for 23 months, divided into two phases, with the first phase comprising 124 units of houses and the second phase consisting of 50 units. This is Inta Bina's fifth construction project this year, with the value of all the contracts totalling RM1.05 billion.
$DSONIC (5216.MY)$: Datasonic Group Bhd announced that it has secured five contract extensions from the Home Ministry, worth a total of RM181.66 million. The extensions are all for a period of six months from June 1 to Nov 30 this year. The contracts include the supply of MyKad, MyTentera and MyPOCA raw cards and consumables to the National Registration Department, comprehensive maintenance services of card personalisation centres at JPN, and supply of Malaysian passport chips, Malaysian passport documents, and polycarbonate biodata pages to the Immigration Department.
$SERBADK (5279.MY)$: Serba Dinamik Holdings Bhd's delisting from Bursa Malaysia will proceed on Wednesday after the exchange regulator dismissed a final appeal from the company. The group's shares will be delisted on Wednesday as scheduled, as the shares have been suspended from trading since January 18, 2023.
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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Mustaqim Mazuky : Hope positive impact to Bursa this month….
Paul Bin Anthony : very good in the world