MY Morning Wrap | Capital A Bhd Seeks the Fourth Extension for Regularisation Plan Submission Amid PN17 Criteria Concerns
Good morning mooers! Here are things you need to know about today's market:
●Last Friday, U.S. stocks finished a volatile pre-holiday trading session with mostly higher results
●Upsurge in demand for E&E products
●Metals pinned between old and new cycles
●Staple products forecast to remain stable
●Stocks to watch: Capital A, Malaysian Resources
-moomoo News MY
Wall Street Summary
Last Friday, U.S. stocks finished a volatile pre-holiday trading session with mostly higher results, with major indexes scoring an eight-straight weekly gain after a subdued PCE inflation reading.
The $Dow Jones Industrial Average (.DJI.US)$ fell around 19 points, or less than 0.1%, unable to shake off a nearly 12% fall for shares of Nike Inc. The $S&P 500 Index (.SPX.US)$ and $Nasdaq Composite Index (.IXIC.US)$ Composite each eked out gains of 0.2%. The Dow was left with a weekly gain of 0.2%, while the S&P 500 advanced 0.8% and the Nasdaq Composite rallied 1.2%.
Breaking News
Local E&E companies supporting high-tech sectors show signs of recovery
The worst may be over for local electrical and electronics (E&E) companies supporting the artificial intelligence (AI), medical technology devices, automotive, cloud computing and aerospace sectors. Malaysia Semiconductor Industry Association president Datuk Seri Wong Siew Hai said manufacturers supporting the sectors are restocking their inventories. Meanwhile, some local E&E manufacturing companies are bearing the brunt of the global economic slowdown arising from macroeconomic and geopolitical issues.
Metals pinned between old and new cycles
2023 has been a tough year for industrial metal traders, with most metals experiencing range-trading conditions. The LME Index is down by 7%, but green demand has provided an important counterweight to traditional metals demand. Despite weak activity in global economies, visible inventory in China is low, and the country's manufacturing sector continues to import large quantities of metals. Nickel has been underperforming due to increasing supply, while zinc has been rallying because of unexpected supply constraints.
Staple products forecast to remain stable
Staple products are expected to remain resilient in the first half of next year, supported by steady unemployment rates and continuous demand for essential necessities. Retail sales growth is expected to moderate due to dampening consumer sentiment, higher interest rates, subsidies rationalisation, and an increase in sales and service tax. Hong Leong Investment Bank Research maintains a "neutral" call on the sector, with Focus Point Holdings Bhd and QL Resources Bhd being its top picks. The research house expects commodity prices to hold up at current levels next year, benefiting food and beverage players with the potential for margin recovery.
Stocks to Watch
$CAPITALA (5099.MY)$: Capital A Bhd is seeking the fourth extension to submit its regularisation plan, which was originally due on Dec 31, 2023. The new deadline for submitting the plan is June 30, 2024. This request marks the fourth time that Capital A has sought an extension from Bursa Securities. After external auditors EY issued an unqualified audit opinion with material uncertainty regarding on-going concern for its audited financial statements for FY2019, Capital A triggered Practice Note 17 (PN17) criteria in July 2020. Additionally, the company's shareholders' equity on a consolidated basis was 50% or less of its share capital.
$MRCB (1651.MY)$: Malaysian Resources Corp Bhd (MRCB) has put forward a proposal to acquire the development rights for an office tower in the PJ Sentral commercial development from the Selangor State Development Corp (PKNS) for RM270 million. The acquisition cost will be paid by disposing of malls and several residential units to PKNS and through internally generated funds. MRCB plans to sell Plaza Alam Sentral Mall and the adjacent land in Section 14, Shah Alam, to PKNS for RM178 million.
$SUNVIEW (0262.MY)$: Sunview Group Bhd has announced that its subsidiary, Vafe System Sdn Bhd, is acquiring a 10% stake in Winstar Aluminium Manufacturing Sdn Bhd from Mestron Holdings Bhd for RM6 million. This acquisition will increase Sunview Group's stake in the aluminium firm to 30%. The renewable energy group aims to establish a cost-effective supply chain for aluminium mounting structures used in solar photovoltaic systems. Sunview's CEO and executive director, HP Ong, stated that with aluminium components accounting for about 10% of the total components, the solar industry is experiencing significant growth.
$NHB (5614.MY)$: A month after a fertiliser group became a substantial shareholder of ILB Group Bhd, Vestland Bhd managing director Datuk Liew Foo Heen has also emerged as a substantial shareholder of the rooftop solar power system provider. Fohen Holding Sdn Bhd has become a substantial shareholder of the group after acquiring 23.17 million shares or a 12.27% stake via a direct business transaction. A check with the Companies Commission Malaysia (SSM) showed that Fohen is 100%-owned by Liew, the major shareholder of construction company Vestland with a 63.33% stake.
$TRC (5054.MY)$: Construction outfit TRC Synergy Bhd has secured a RM23.8 million contract from the Department of Irrigation and Drainage (DID) to design and build a flood mitigation dam in Gombak, Selangor. TRC Synergy said its wholly-owned subsidiary Trans Resources Corp Sdn Bhd had on Thursday received the letter of acceptance from the department.No further details of the contract were disclosed.
$JIANKUN (8923.MY)$: Jiankun International Bhd is acquiring 99.99% equity interest in Penang-based Oriental Link Properties (M) Sdn Bhd (OLPSB) from the privately held property development company's two directors Lee Khoon Eng and Lee Phaik Choo for RM9.5 million. Khoon Eng currently holds a 99.2% stake in OLPSB and Phaik Choo 0.79%, while the remaining 0.01% is still being held by its other director Ong Cheng Tat.
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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