MY Morning Wrap | Sime Darby Property Proposes Internal Reorganisation to Streamline Business Streams
Good morning mooers! Here are things you need to know about today's market:
●US Stocks Take a Breather as Investors Await Key Jobs Data
●Sunway Included in FTSE Bursa Malaysia KLCI as AMMB Holdings is Demoted
●Malaysian Property Market Shows Significant Growth and Resilience, Says Housing Minister
●Stocks to watch: Sime Darby Property, Nestcon
-moomoo News MY
Wall Street Summary
US stocks took a breather after the S&P 500 and Nasdaq Composite climbed to records the previous day, with investors awaiting key jobs data that could influence the US Federal Reserve's decision to cut interest rates in the coming months. The $S&P 500 Index(.SPX.US)$ closed almost flat at 5352.25, while the $Nasdaq Composite Index(.IXIC.US)$ slipped less than 0.1% to 17173.12. NVIDIA, which contributed to the indexes' rally to a record on Wednesday, saw a slip in its stock price as investors awaited the 10-for-1 stock split set to be implemented after close tomorrow.
Breaking News
Sunway Included in FTSE Bursa Malaysia KLCI as AMMB Holdings is Demoted
Sunway Bhd has been included as one of the 30 constituents of the FTSE Bursa Malaysia KLCI, while AMMB Holdings will be demoted to the FTSE Bursa Malaysia Mid 70 Index. The changes were made following the semi-annual review of the FTSE Bursa Malaysia Index Series and will take effect on June 24, 2024. The FTSE Bursa Malaysia KLCI is widely used as the primary benchmark for the Malaysian capital market. The FTSE Bursa Malaysia Mid 70 Index saw nine inclusions and nine exclusions. The FTSE Bursa Malaysia KLCI reserve list comprises AMMB Holdings, Dialog Group, Gamuda, IOI Properties Group, and Malaysia Airports.
Malaysian Property Market Shows Significant Growth and Resilience, Says Housing Minister
Malaysia's property market has shown significant growth and resilience, with property stocks experiencing notable gains throughout the year, according to Housing and Local Government Minister Noh Omar. Out of the 100 property stocks listed on Bursa Malaysia from January 2023 to June 2024, approximately 76 have seen an increase in share prices. The Kuala Lumpur Property Index has risen by over 70% in the past 17 months, with UEM Sunrise surging by over 340%. The total value of real estate market transactions in the first quarter of this year reached RM56.53 billion, representing a significant increase from the previous year and indicating a strong recovery trend. Noh is confident in the future of Malaysia's property market under the leadership of Prime Minister Datuk Seri Anwar Ibrahim.
Stocks to Watch
$SIMEPROP (5288.MY)$: Sime Darby Property has proposed an internal reorganisation that involves transferring selected assets, liabilities, and business activities to its wholly-owned subsidiaries. The move aims to streamline the company's structure into separate business streams to better reflect its diverse operations, with Sime Darby Property functioning solely as an investment holding company. Under the proposal, township developments under Sime Darby Property, including Bukit Jelutong, Denai Alam, Elmina Business Park, Bukit Subang, and Bandar Hamilton Nilai in Negeri Sembilan, will be transferred to respective units.
$KAB (0193.MY)$: Kinergy Advancement Bhd is acquiring an Indonesian company for RM8.89 million to build a 4.26-megawatt biogas plant in Aceh. KAB Energy Holdings Sdn Bhd, a unit of KAB, signed a term sheet with Green Energy Specialist Pte Ltd of Singapore to acquire the entire equity interest in PT Green Energy Specialist One Tbk. The proposed acquisition includes exclusivity over a 6.5-hectare land where the plant will be built. PT Geso has secured a power purchase agreement with Indonesia's state electricity company PT Perusahaan Listrik Negara Tbk, lasting for 25 years from the commercial operation date. The proposed acquisition also includes an exclusive agreement with four palm oil millers for their effluent to secure a consistent supply of raw materials for biogas production.
$DPHARMA (7148.MY)$: Duopharma Biotech, in which Permodalan Nasional Bhd holds a 44.11% stake, is reviewing merger and acquisition proposals for firms in Indonesia and the Philippines as it aims to diversify its revenue streams geographically and reduce reliance on ringgit-denominated earnings. The group is eyeing M&A activities within Asean for ease of control and intends to increase the share of export to total sales for foreign currency-denominated sales, which act as a natural hedge against the procurement of raw materials priced in US dollars.
$TAFI (7211.MY)$: TAFI Industries' unit, TA Furniture & Projects, is disposing of an industrial property in Muar, Johor, comprising a factory annexed with a storey office, for RM12 million. The sale and purchase agreement was made with Comfy Factor Sdn Bhd & NNST Capital Sdn Bhd, and the disposal will realise a gain after Real Property Gains Tax of around RM8.1 million based on the net book value of RM3.1 million as of March 31, 2024. The single-storey detached factory was primarily used for furniture manufacturing. TAFI is disposing of the property as it plans to achieve cost-efficiency by sub-contracting out certain manufacturing processes.
$NESTCON (0235.MY)$: Nestcon Bhd has secured a RM37.7 million contract for construction works on a development project in Kota Seri Langat in Banting, Selangor. Its subsidiary, Nestcon Infra Sdn Bhd, has accepted a letter of award from property developer Seriemas Development Sdn Bhd for the construction and completion of earthworks, soil improvement, and associated works for package 4-2 of the proposed development. The work is set to commence on June 11 and is expected to be completed within ten months, by April 10, 2025, with a defect liability period of 12 months from the date of the certificate of practical completion of the contract works.
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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