MY Morning Wrap | Paragon Globe Sells Plentong Land to Bridge Data Centres for RM238.32 Million
Good morning mooers! Here are things you need to know about today's market:
●Market Suffers as Intel and Amazon Earnings Stir Recession Fears, Dow Plunges 600 Points
●Ringgit Hits 14-Year Peak, Credits Unity Government's Policies
●Malaysia-Thailand Bridge Pact Marks New Era of Economic Collaboration, PM Anwar States
●Sabah to Harness Oceans for Economic Growth, Announces Hajiji
●Stocks to watch: Ranhill, YTL Power, Paragon Globe
-moomoo News MY
Wall Street Summary
The stock market faced significant headwinds on Friday after a series of shaky earnings reports throughout the week. Investor sentiment was dampened by disappointing earnings from tech giants Intel and Amazon, coupled with concerning job data that heightened recession worries. The Dow Jones Industrial Average bore the brunt of the sell-off, dropping 600 points. Intel's shares plummeted, marking its most substantial single-day decline in decades, hitting a low not seen since 2013. Over the week, the $.SPX.US$ fell by 3.18%, the $.DJI.US$ by 2.71%, and the $.NDX.US$ by 4.68%. Market breadth was overwhelmingly negative, with 8900 stocks declining versus a mere 2800 that managed to climb.
Breaking News
Ringgit Hits 14-Year Peak, Credits Unity Government's Policies
Malaysian Prime Minister Datuk Seri Anwar Ibrahim attributed the ringgit's surge to its strongest level in 14 years to the effective policies of the Unity Government and their collaborative efforts in national development. Contrary to opposition claims of the currency's decline, Anwar emphasized that the ringgit has displayed a positive recovery, even outperforming other Asian currencies. During his speech at the Sabah Keadilan Convention, he credited the influx of investments to the government's proactive approach rather than his personal influence, despite leading the country's representation in the international arena. Anwar highlighted his international advocacy for Malaysia and states like Sabah as prime investment destinations, citing sectors such as oil and gas, tourism, new technology, and energy transition. Additionally, Anwar cautioned the people of Sabah against leaders who might exploit regionalist slogans for selfish interests, urging them to focus on addressing critical local issues like poverty and infrastructure.
Malaysia-Thailand Bridge Pact Marks New Era of Economic Collaboration, PM Anwar States
Prime Minister Datuk Seri Anwar Ibrahim underscored the Malaysia-Thailand agreement on constructing the second Sungai Golok-Rantau Panjang bridge as a testament to both nations' commitment to regional economic growth. During his visit to Pasir Mas, he emphasized the need to expedite crucial, long-standing projects, with the bridge set to enhance connectivity and economic synergy between southern Thailand and northern Malaysia. Anwar proposed additional local development to support Kelantan's economy and announced efforts to potentially complete the bridge ahead of the 2027 deadline. The collaborative stance between Anwar and his Thai counterpart, Srettha Thavisin, along with a fast-tracked review process, underscores a shared focus on tangible, cross-border economic progress.
Sabah to Harness Oceans for Economic Growth, Announces Hajiji
Sabah Chief Minister Datuk Seri Hajiji Noor has announced that the state is looking to develop its blue economy by tapping into marine resources to fuel economic growth. An international seminar on the blue economy, expected to be launched by Prime Minister Anwar Ibrahim, is scheduled for October. Hajiji emphasized the state's commitment to economic expansion and poverty reduction, noting the success in attracting RM12 billion in investments and creating job opportunities. The state's collaboration with Petronas and other sectors aims to eradicate hardcore poverty and sustain regional development.
Stocks to Watch
$RANHILL.MY$: Ranhill Utilities Bhd has announced the resignation of four of its directors, including the founder and executive chairman Tan Sri Hamdan Mohamad, following the successful acquisition by YTL Power International Bhd and its subsidiary SIPP Power Sdn Bhd. The departures are in line with the terms outlined in the unconditional share sale and purchase agreement that facilitated the takeover. The change in Ranhill's board reflects the new ownership structure as YTL Power International consolidates its control over the utility company.
$PGLOBE.MY$: Paragon Globe Bhd, a property developer based in Johor, is making a strategic land sale from its recent acquisition in Plentong, Johor Bahru. After purchasing a substantial 104.5-acre parcel of freehold land for RM71.5 million in November 2023, the company has entered into an agreement with Bridge Data Centres Malaysia IV Sdn Bhd to dispose of a portion of this land. The sale, which was agreed upon in May, includes 47.86 acres from the plot designated under Geran 80943 Lot 2699, for a total cash consideration of RM238.32 million. This transaction is part of Paragon Globe's strategy to enhance its cash reserves and improve its financial standing. The size of the land, comparable to 104 football fields, underscores the scale of the deal and its potential impact on both parties involved.
$ULICORP.MY$: Prudential plc, the British-based insurance giant, has become a substantial shareholder in United U-Li Corp Bhd, a Malaysian company specializing in cable support systems. This development occurred after Prudential plc, through its investment arm Eastspring Investments Bhd, acquired an additional 37,700 shares in United U-Li on July 31. The transaction increased Prudential's total holdings to a 5.19% stake in the company, signaling a vote of confidence in United U-Li's business and potential growth. This move reflects Prudential's investment strategy and commitment to expanding its portfolio in the Asian market.
$ECOHLDS.MY$: The trading of shares in Ecobuilt Holdings Bhd is set to be suspended starting August 9, following the High Court's approval of a winding-up petition against the company. This decision comes after Ecobuilt was served with the winding-up petition by S-Form System Formwork (M) Sdn Bhd on April 24 over a claim amounting to RM670,596. On July 24, the High Court not only sanctioned the petition but also dismissed Ecobuilt's attempt to stay the winding-up proceedings. The approval of the winding-up order marks a significant turn of events for Ecobuilt, indicating serious financial distress and leading to the cessation of trading of its shares on the stock exchange.
$STRAITS.MY$: Straits Energy Resources Bhd has decided to streamline its business operations by exiting the port operation and management industry. The company is set to sell its full 51% stake in Megah Port Management Sdn Bhd (MPM), which holds the concession for Labuan Liberty Port, to LPM Holdings Sdn Bhd for a cash consideration of RM5 million. This strategic move aims to simplify the group's structure, allowing it to focus on its core businesses, thereby enhancing operational efficiency and effectiveness across the organization. The divestment reflects Straits Energy Resources Bhd's commitment to optimizing its operations and focusing on its strengths in oil trading and fuel bunkering services.
$BNASTRA.MY$: Binastra Corp Bhd's subsidiary, Binastra Builders Sdn Bhd, has been awarded a RM160 million contract from Dynamicz Sdn Bhd for the demolition and subsequent construction of an office complex in Damansara Perdana. The project encompasses the construction of main building works, including four floors of offices with a total of 560 units, and two levels of basement parking. The project is slated for completion by July 30, 2026, marking a significant engagement for Binastra in the construction sector.
$AWANTEC.MY$: AwanBiru Technology Bhd, known for its cloud-based services, has struck a deal to provide Google Workspace Enterprise Starter licences to Sabah Net Sdn Bhd (SNSB) for RM9.97 million. This agreement, executed through Awantec's fully owned subsidiary Awantec Systems Sdn Bhd, secures a five-year subscription of the licences, beginning August 1, 2024, and extending to July 31, 2029. This partnership represents a significant business move for Awantec, reinforcing its position as a key player in the cloud services industry within the region.
$MSC.MY$: Malaysia Smelting Corp Bhd reported a 41.2% decrease in net profit for the second quarter ending June 30, 2024, with earnings dropping to RM16.72 million from RM28.45 million in the same period last year. The decline in profit is attributed to a downturn in the performance of its tin smelting operations. Despite the lower profitability, the company experienced a revenue increase of 26% to RM410.8 million, up from RM327 million, attributed to a higher average tin price. However, the company has not declared a dividend for this quarter.
$PTRANS.MY$: Perak Transit Bhd, a notable player in the development and operation of integrated public transportation terminals, has announced its plan to secure RM1.5 billion through a perpetual Sukuk Wakalah programme. This strategic financial move is aimed at supporting the company's capital expenditure and bolstering working capital. A significant portion of the funds will be allocated for constructing Terminal Seri Iskandar, a new integrated bus transport terminal combined with a commercial complex in Bandar Seri Iskandar, Perak, with financing up to a 70% margin of advance. Additionally, the proceeds from the sukuk issuance will be utilized to refinance the company's existing Shariah-compliant financing and/or conventional borrowings, aligning with its growth and expansion objectives while adhering to Islamic financing principles.
$TALIWRK.MY$: Taliworks Corp Bhd is poised for a financial uplift in FY2024 as it anticipates receiving insurance payments for solar module replacements at its solar plants. Expected this month, the US$2.32 million (RM10.67 million) payout will positively impact the group's financial results for the year, providing a boost to the infrastructure group's performance. The compensation, which covers the costs associated with the solar module replacements for the company's wholly-owned subsidiaries, marks a notable development in Taliworks' financial trajectory.
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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Ernestine : k
Zamm : About the RM hit the peak; when came to situation whereby one have to sacrify to see oneside succeed; everyone knew this kind of situation very difficult to handle. However, in order to show our face is flawless, we would not tell to others that actually our inner body have been suffering chronic disease. What are we afraid of and worry is the disease cant be cured and cause we suffering until Qiamat coming.
103916021 : k
103677010 : noted
104088143 : OK
krishnakumar_53 : Hi