MY Morning Wrap | Sarawak Becomes Largest Shareholder of Affin Bank with 31.25% Stake

Moomoo News MY wrote a column · Sep 30, 2024 07:38

Good morning mooers! Here are things you need to know about today's market:

● Slow Wall Street Friday Market Sees Pull Back

● Study Analyzes AI's Influence on Ten Key Sectors in Malaysia's Job Market

● 2025 Budget: Ministry Suggests 'Madani Deposit' Scheme to Facilitate First Home Purchases for Young Adults

● Stocks to Watch: Affin Bank, Gamuda, HeiTech Padu, Kim Loong, Crescendo, etc.

- Moomoo News MY

MY Morning Wrap | Sarawak Becomes Largest Shareholder of Affin Bank with 31.25% Stake

Wall Street Summary

The market climbed Friday after the Fed's favorite way to measure inflation came in at the lowest year-over-year increase since 2021: 2.2%. That strength was felt in the Russell 2000 and Dow Jones Industrial Average, but as tech fell and Chinese stocks pulled back their run the rest of the market felt soft.

Tech and material stocks pulled down the Nasdaq and S&P 500, even after the S&P 500 hit a trading and closing high Thursday. Just past 4 pm ET on Friday, the $S&P 500 Index (.SPX.US)$ traded -2 bps, the $Dow Jones Industrial Average (.DJI.US)$ climbed 0.48%, and the $Nasdaq Composite Index (.IXIC.US)$ fell 0.25%.

Breaking News

Study Analyzes AI's Influence on Ten Key Sectors in Malaysia's Job Market

Human Resources Minister Steven Sim Chee Keong announced an in-depth study on the impact of artificial intelligence (AI) on the Malaysian job market, focusing on 10 strategic sectors. This comprehensive report, conducted by his ministry, aims to shape the development of job roles and skills for the next three to five years. The sectors analyzed include information and communications technology, global business services, aerospace, food manufacturing and services, and wholesale trade and retail. Additionally, the study encompasses electronics and engineering, pharmaceutical manufacturing, medical devices, energy, chemical, power, marine and offshore industries, tourism, hotels, and accommodation.

2025 Budget: Ministry Suggests 'Madani Deposit' Scheme to Facilitate First Home Purchases for Young Adults

The Ministry of Housing and Local Government (KPKT) is dedicated to assisting young adults in acquiring their first homes through the 'Madani Deposit' scheme. Targeted at individuals aged 21 to 40, the 'Madani Deposit' is among 33 initiatives proposed by KPKT to the Ministry of Finance for the 2025 budget. On August 21, KPKT presented these 33 initiatives, totaling nearly RM1 billion, to the Ministry of Finance. These initiatives aim to improve public welfare and include the creation of 100 Madani recreational parks, the 'Madani Deposit', transformation of reservoirs, implementation of electronic sale and purchase agreements, and e-stamping.

Stocks to Watch

Sarawak has ascended to the position of the largest shareholder in $AFFIN (5185.MY)$, now holding a 31.25% stake. On Friday, the state's entity, SG Assetfin Holdings Sdn Bhd, finalized a share purchase agreement with two existing shareholders of Affin Bank — Lembaga Tabung Angkatan Tentera (LTAT) and Boustead Holdings Bhd. This agreement increased Sarawak's share from 4.8% to 31.25%, marking a significant enhancement in its investment portfolio.

$GAMUDA (5398.MY)$ has been awarded a construction contract worth A$243 million (RM702 million) to develop the Boulder Creek Wind Farm in Queensland, Australia. According to a company statement, the project will feature 38 turbines, generating a total capacity of 228 megawatts, with operations set to commence in 2027. Initial site preparations are scheduled to start before the end of 2024, escalating from early to mid-2025. The contract was secured by Gamuda's Australian subsidiary, DT Infrastructure Pty Ltd, from Aula Energy Holdings Pty Ltd and CS Energy Ltd.

$HTPADU (5028.MY)$ is set to acquire a 30% stake in the privately held Souqa Fintech Sdn Bhd for RM16.17 million. HeiTech's subsidiary, Synergy Grid Sdn Bhd, has signed a share subscription agreement to purchase 10.78 million new ordinary shares in Souqa Fintech at RM1.50 each. Souqa Fintech, which operates an integrated online payment platform and owns the Islamic payment gateway "PayHalal," will see this investment funded by RM11 million in cash from HeiTech Padu, with the remaining RM5.17 million covered through an invoice detailing necessary services from Souqa Fintech. Currently, Asad Capital Sdn Bhd holds a 58.29% stake in Souqa Fintech, while Crescent Capital Sdn Bhd owns 16.7%.

Specializing in mechanical and electrical (M&E) services, $BINTAI (6998.MY)$ is intensifying efforts in its construction division as part of its regularization strategy to exit its Practice Note 17 status. The company plans to allocate over 25% of its net assets to this division, expecting it to contribute significantly to future net profits. The focus will be on M&E engineering and construction to improve business performance. Additionally, Bintai Kinden is proposing a share capital reduction to eliminate up to RM160 million in accumulated losses and enhance financial standing, alongside a private placement of up to 244 million new shares, aiming to raise RM19.5 million for debt repayment and operational capital.

$KMLOONG (5027.MY)$ reported a 8.9% decrease in net profit for its second quarter ending July 31, 2024 (2QFY2025), totaling RM39.5 million, down from RM43.35 million a year earlier, due to lower contributions from palm oil milling operations impacted by reduced crude palm oil extraction rates. Despite this, revenue increased by 5.3% to RM405.94 million from RM385.61 million. The company has announced an interim single-tier dividend of five sen per share, payable on November 13.

$PGB (0091.MY)$ is proposing a private placement to raise up to RM8.25 million for business expansion and to support new projects, involving the issuance of up to 67.59 million new ordinary shares, about 10% of its issued shares. Concurrently, the group is increasing its stake in majority-owned subsidiary Best Wide Engineering (M) Sdn Bhd (BWE) to 90% from 51% for RM6.19 million, enhancing its capacity in engineering and construction services for the oil and gas sector.

$CRESNDO (6718.MY)$ net profit for the second quarter ended July 31, 2024 (2QFY2025) skyrocketed over 30 times year-on-year, powered by significant land sales linked to data centers in Nusa Cemerlang Industrial Park, Johor. The net profit reached RM140.84 million, compared to RM4.28 million in the previous year. Revenue also saw a substantial increase, rising more than fivefold to RM321.46 million from RM61.12 million. The company declared an interim dividend of one sen per share and a special dividend of five sen per share, payable on November 13.

$PTRB (0260.MY)$ collaboration with China's Ocean Exchange (Fujian) Foreign Trade Services Co Ltd (Ocean Exchange) to develop the Malaysia East Coast International Supply Chain Intelligent Park in Kuantan, Pahang, has been discontinued. The project aimed to boost Malaysia-China bilateral trade. Despite this setback, PT Resources reported a 5.75% increase in its first quarter net profit ending April 30, 2024 (1QFY2025), reaching RM4.96 million, attributed to heightened demand from Chinese.

Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The EDGE

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