MY Morning Wrap | PetGas Commits to Compressor Station Project Costing up to RM650m
Good morning mooers! Here are things you need to know about today's market:
●US Treasury yields climb ahead of Fed meeting, stocks fall
●Opportunity to accumulate REIT stocks on appealing distribution yields
●Penang records country’s highest investment inflow in 2023
●Stocks to watch: Petronas, PetGas
-moomoo News MY
Wall Street Summary
Stocks fell on Friday, erasing weekly gains amid a sell-off in tech stocks that had recently propelled the major equity indexes to records. The tech-heavy $Nasdaq Composite Index (.IXIC.US)$ sustained the biggest blow, declining almost 1% to close at 15,973.17, as Nvidia failed to hold on to gains. The $S&P 500 Index (.SPX.US)$ fell 0.65% to 5,117.09, while the $Dow Jones Industrial Average (.DJI.US)$ lost 0.5% to end the day at 38,714.77. Investors are retreating ahead of the US Federal Reserve meeting, where policymakers are expected to release their latest projections on the path of interest rates.
Breaking News
Opportunity to accumulate REIT stocks on appealing distribution yields
AmInvestment Bank Research has identified buying opportunities in local Malaysian real estate investment trust (REIT) stocks, given widening yield spreads against 10-year Malaysian Government Securities (MGS) and appealing distribution yields of 6% to 8%. With monetary policy tightening coming to a tail-end, developed economies could potentially cut interest rates in the second half of 2024, according to the research firm. It expects retail REITs to continue experiencing healthy growth in 2024, driven by stable occupancy rates and positive rental reversions, while the hospitality segment is on a growth trajectory with a robust recovery in occupancy rates and daily rates. However, occupancy and rental reversion rates in the office segment are expected to be flattish due to oversupply challenges in Kuala Lumpur city centre.
Penang records country's highest investment inflow in 2023
Penang recorded RM71.9bn ($17.1bn) in investment inflows in 2023, the highest in Malaysia, driven by foreign direct investments which accounted for RM61.7bn, or 85.8% of Penang's manufacturing investment inflows. Penang's Chief Minister Chow Kon Yeow attributed this to the state's transparent, investor-friendly, and competitive economic policies. He said the Northern Corridor Economic Region's Technology Innovation Centre in Bayan Lepas is expected to be completed in Q3 2024, which will be the main platform to attract technology-related investments to the region via collaborations between local SMEs, multinational companies, and academics.
Stocks to Watch
$PETRONM (3042.MY)$: Petroliam Nasional Bhd (Petronas), the country’s state-owned oil and gas (O&G) company, posted a net profit of RM16.6 billion for the fourth quarter of 2023 (4QFY2023), down 32% from RM24.4 billion a year earlier, due to lower average realised prices. Quarterly revenue dropped 12% to RM91.7 billion from RM104.2 billion. For FY2023, Petronas’ net earnings dropped 20.6% to RM80.7 billion from a record high of RM101.6 billion in FY2022, as revenue fell 7.7% to RM343.6 billion from RM372.3 billion. For FY2024, it plans to give out RM32 billion as dividend and spend between RM50 billion and RM60 billion for capital expenditure.
$PETGAS (6033.MY)$: Petronas, Malaysia's state-owned oil and gas company, has reported a net profit of RM16.6bn ($3.95bn) for Q4 2023, down 32% from RM24.4bn a year earlier due to lower average realised prices. Quarterly revenue dropped 12% to RM91.7bn from RM104.2bn. For FY2023, Petronas' net earnings fell 20.6% to RM80.7bn from a record high of RM101.6bn in FY2022, as revenue dropped 7.7% to RM343.6bn from RM372.3bn. For FY2024, the company plans to give out RM32bn as dividend and spend between RM50bn and RM60bn for capital expenditure.
$RHBBANK (1066.MY)$: Boost Bank Bhd, a digital bank venture by RHB Bank Bhd and Boost Holdings Sdn Bhd, has received an additional RM8.5m ($2m) from its shareholders. RHB Bank contributed RM3.4m to maintain its 40% stake, while Boost Holdings added RM5.1m to keep its 60% stake. The funding will support Boost Bank's operational and capital expenditures for H1 2024 and ensure compliance with Bank Negara Malaysia's minimum capital requirements. Following the transaction, Boost Bank's paid-up capital stands at approximately RM215m. Boost-RHB is one of five consortiums awarded digital banking licenses by Bank Negara in April 2022.
$MNHLDG (0245.MY)$: MN Holdings Bhd, an underground utilities and substation engineering outfit, has appointed former CEO of Tenaga Nasional Bhd, Datuk Seri Baharin Din, as its independent non-executive chairman. Baharin served as CEO of the national utility giant for three years from March 2021 to February 2024. He was also the managing director of Sabah Electricity Sdn Bhd from March 2007 to November 2011. His appointment as MN Holdings' chairman is effective immediately.
$FAJAR (7047.MY)$: Fajarbaru Builder Group Bhd, in partnership with Avionics Pty Ltd, a wholly-owned unit of Avionics Holdings Pty Ltd, has secured a minor works contract for the partial delivery phase of redeveloping military facilities at the Royal Malaysian Air Force base in Butterworth, Penang. The contract, awarded by the Australian Department of Defence, is worth RM13.81m ($3.28m), with Fajarbaru's portion being RM11.04m ($2.62m) and Avionics' portion being RM2.77m ($657,500).
$MICROLN (0126.MY)$: Microlink Solutions Bhd is planning to raise up to RM89.37m ($21.2m) through a rights issue of redeemable preference shares (RPS) with detachable warrants, with the aim of repaying bank borrowings and financing working capital. The issue will offer up to 89.37 million RPS at RM1 each, with 268.1 million free detachable warrants, on a basis of one RPS and three warrants for every 12 existing shares. The RPS has a tenure of five years and a dividend rate of 6% per annum based on the issue price.
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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