MY Morning Wrap | Technology Sector Earnings Likely to Pick Up in 3Q23
Good morning mooers! Here are things you need to know about today's market:
●S&P 500 closes higher on CPI data cementing bets for Fed pause
●Technology sector earnings likely to pick up in 3Q23
●Stocks to watch: RHB Bank, Bumi Armada
-moomoo News MY
Wall Street Summary
Investors largely liked what they saw in Wednesday's inflation report, solidifying their bets that the Federal Reserve will hold interest rates steady at the end of next week's policy meeting.
Major stock indexes were modestly higher for most of the day before losing some momentum in the final 90 minutes of the session. The $S&P 500 Index (.SPX.US)$ added 0.1%, the $Nasdaq Composite Index (.IXIC.US)$ rose 0.3%, and the $Dow Jones Industrial Average (.DJI.US)$ fell 0.2%. Treasury yields were little changed, with the yield on the 10-year note falling to 4.248% from 4.263% on Tuesday.
Breaking News
Technology sector earnings likely to pick up in 3Q23
Technology sector earnings will pick up quarter-on-quarter (QoQ) as we move into the third quarter of 2023 (3Q23) due to seasonal factors and short-term inventory replenishment, according to RHB Research. Slowing demand from the overall downcycle of the semiconductor sector amid inventory correction due to double-booking previously, is expected to persist in the second half of 2023 (2H23), as the demand for end-products remains lukewarm. RHB Research added that it favours domestic-focused businesses, given the relatively stable demand, and advocates a beta play strategy to track the global semiconductor run-up, while being selective in the small-mid cap space.
Stocks to Watch
$CIMB (1023.BMS)$ : CIMB continues to gain strong traction on its sustainability commitments and has already met between 22% and 143% of its 2024-2030 targets. The bank has completed Scope 3 financed emissions baseline for nine carbon-intensive sectors, covering 61% of CIMB's total gross loans. The top-three largest contributing sectors were oil and gas (22%), cement (20%) and power generation (14%), which make up more than 50% of the bank's financed emissions but were only 4% of total gross financing.
$RHBBANK (1066.BMS)$ : RHB Bank Bhd has announced Oct 12 as the payment date for its interim dividend of 15 sen per share for the financial year ended Dec 31, 2023 (FY2023), with the ex-date falling on Sept 27, and the entitlement date on Sept 29. The dividend, which amounted to a payout of RM642.95 million, was announced on Aug 29.
$ARMADA (5210.BMS)$ : Bumi Armada Bhd has signed a non-binding agreement with PT Pertamina International Shipping and PT Davenergy Mulia Perkasa (DMP), an Indonesian natural gas trading company, for the development and commercialisation of liquefied natural gas (LNG) in the Madura gas field in Indonesia. The agreement outlined the key principles to develop and commercialise LNG from the Madura gas field and its surrounding fields. Preliminary discussions have been initiated with several potential off-taker clients and the first shipment of LNG is anticipated to take place three years after making the final investment decision.
$BJCORP (3395.BMS)$ : Berjaya Corp Bhd has increased its stake in Berjaya Food Bhd (BFood) to 55.31% from 52.86%, after the conglomerate bought 43 million BFood shares for RM29.57 million or about 68.8 sen per share.
$DNEX (4456.BMS)$ : Dagang Nexchange Bhd (DNeX) has proposed a private placement to raise up to RM133.44 million as funding for the expansion of its oil and gas segment. This is its first private placement since 2021, when it placed 30% of its issued share capital, raising RM163.61 million following its venture into SilTerra Malaysia Sdn Bhd. The latest fundraising is to fund the development of the Fyne Field in the UK's North Sea, the Meranti Cluster offshore Terengganu and the A Cluster offshore Miri, Sarawak. The private placement entails the issuance of up to 315.63 million shares, representing 10% of its total issued share of 3.15 billion.
$JHM (0127.BMS)$ : Automotive lighting product manufacturer JHM Consolidation Bhd plans to team up with its Chinese counterpart Jiangsu Dekai Auto Parts Co Ltd (DEKAI) to sell automotive lighting products in Malaysia and other Southeast Asian countries. It has entered into a memorandum of understanding with DEKAI to record the intention of the two companies to form a joint venture company called JHM DEKAI Auto Lighting Sdn Bhd, which will design, manufacture, market and sell automotive lighting products here and in other Southeast Asian countries. JHM will hold a 55% stake in JHM DEKAI Auto Lighting and DEKAI, the remaining 45%.
$HHRG (0175.BMS)$ : HHRG Bhd — formerly known as Heng Huat Resources Group Bhd — has entered into an agreement with several shareholders of Kulim Property Sdn Bhd (KPSB) to acquire KPSB’s entire equity for RM4.5 million. It will be funded through internal funds and borrowings, with the exercise expected to be completed by March 31, 2024.
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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