MY Morning Wrap | TNB Retains Majority Stake in SESB as Sabah Government Holds 17%

The $Nasdaq Composite Index (.IXIC.US)$ experienced its longest losing streak since 2022, closing lower for the fifth consecutive session as large-cap tech stocks, including market leader Apple, retreated from their peak values. Apple's shares dropped 5% over the week following downgrades by Piper Sandler and Barclays, contributing to the Nasdaq's 0.6% decline to 14,510.30. Meanwhile, the $S&P 500 Index (.SPX.US)$ and the $Dow Jones Industrial Average (.DJI.US)$ also felt the pressure, with respective declines of 0.4% and a marginal change, underscoring a broader market downturn.

$TENAGA (5347.MY)$: Mohd Yaakob Jaafar, CEO of Sabah Electricity Sdn Bhd (SESB), stated that Tenaga Nasional Berhad (TNB) remains the primary shareholder of SESB, holding a majority stake. He emphasized that the Sabah government has not fully taken over SESB, possessing only 17% of the shares. He clarified that while SESB continues to manage the region's electricity industry, regulatory authority has been transferred back to the Sabah government via the newly established Sabah Energy Commission.

$RHBBANK (1066.MY)$: RHB Banking Group has announced the appointment of Datuk Fad'l Mohamed as the new managing director of group wholesale banking, with his new role commencing on February 2. Prior to this appointment, Fad'l served as the chief executive officer of Maybank Investment Bank (Maybank IB), a position from which he stepped down on Wednesday. His experience in the investment banking sector includes his tenure at Maybank IB beginning in 2015, where he started as the deputy CEO.

$UEMS (5148.MY)$: UEM Sunrise Bhd experienced a significant surge on Bursa Malaysia, with its stock price reaching a six-year peak since February 2018. The company's shares saw a voluminous trade, reflecting investor enthusiasm driven by its extensive land holdings in Johor. The region is considered a burgeoning area for the real estate market, with the anticipation of major transit projects like the Johor-Bahru Singapore Rapid Transit System and the creation of the Johor-Singapore Special Economic Zone (SEZ). The SEZ aims to facilitate cross-border commerce and enhance the dynamic of Iskandar Malaysia, where Iskandar Puteri—a key development area for UEM Sunrise—is located.

$MISC (3816.MY)$: MISC Bhd, a company majority-owned by Petroliam Nasional Bhd (Petronas) with a 51% stake, has announced that Afendy Mohamed Ali will take on the role of chief financial officer (CFO) starting March 1. At 50 years old, Afendy is set to replace Raja Azlan Shah Raja Azwa, who has served as the CFO since April 2019. Alongside this CFO transition, Raja Azlan will assume the new role of vice president of corporate planning within MISC.

$KERJAYA (7161.MY)$: Kerjaya Prospek Group Bhd's shares rose to a record RM1.63 amid expectations of strong growth in Andaman Island. TA Securities raised its target price for the company to RM1.64, citing a higher P/E multiple of 13 times for 2024. The boost follows Kerjaya Prospek's recent RM170.9 million contract win for the Seri Tanjung Pinang Phase 2 project in Penang with Persada Mentari Sdn Bhd, a subsidiary of E&O.

$EKOVEST (8877.MY)$ and $IWCITY (1589.MY)$, connected to business magnate Tan Sri Lim Kang Hoo, saw a spike in trading activity on Bursa Malaysia. Ekovest's shares soared, with trading volume quintupling its three-month average, reaching a peak since late September before closing higher. Simultaneously, IWCity's trading volume sextupled its three-month average, with the share price hitting a multi-year high before ending the session with notable gains.

$DAYANG (5141.MY)$: Dayang Enterprise Holdings Bhd has been awarded a contract by Petronas Carigali Sdn Bhd to conduct rectification works to maintain asset integrity for the Sarawak Oil Asset package. The contract's financial value will be determined by work orders issued over its three-year lifespan, commencing December 15, 2023. Dayang anticipates that this contract will bolster the group's earnings over the duration of the agreement.

$MNHLDG (0245.MY)$: MN Holdings Bhd has obtained a lucrative RM98 million contract for executing high voltage horizontal directional drilling and cable bridge construction for a data centre in Peninsular Malaysia's southern area. The company's fully-owned branch, Mutu Nusantara Sdn Bhd, received the contract from a client in the data centre services sector. In line with the client's request for confidentiality, MN Holdings has not disclosed further details about the client. This contract is set to enhance MN Holdings' position as a key player in infrastructure utilities services.

$PHARMA (7081.MY)$: Pharmaniaga Bhd's share price jumped by as much as 13.2% to 43 sen on Thursday after the announcement of a seven-year concession agreement with the Ministry of Health for medical supply logistics services. By the end of the trading day, the shares had slightly retreated to 40.5 sen but were still up by 8%, valuing the pharmaceutical company at RM583.7 million. The trading volume surged to 11.17 million shares, nearly three times the 200-day average of 4.19 million shares.

$IBRACO (5084.MY)$: Ibraco Bhd has entered into a strategic collaboration with subsidiaries of China Railway Group Ltd, establishing a joint venture called Ibraco CREC JV Sdn Bhd (ICJVSB) to execute infrastructure projects for the Kuching Urban Transportation System (KUTS). Ibraco's own subsidiary, Ibraco Construction Sdn Bhd (ICSP), joins forces with China Railway Engineering Corporation (M) Sdn Bhd (CRECM) and Nanyang Tunnel Engineering Sdn Bhd for this initiative. The newly formed JV company starts with a RM2 million initial paid-up capital, split into 2 million shares.

$SINARAN (5172.MY)$: Sinaran Advance Group Bhd (SAG), known before as K-Star Sports Ltd, has announced a proposal for a capital reduction amounting to RM68 million. This move, through the cancellation of issued share capital, is intended to counterbalance the company's accrued losses of RM69.21 million. Following the exercise, SAG's share capital will be reduced to RM42.74 million. The initiative is strategized not only to clear past losses but also to strengthen SAG's capacity to distribute future dividends and to establish a more robust financial foundation to support upcoming growth.

$ARREIT (5127.MY)$: AmanahRaya Real Estate Investment Trust (ARREIT) has concluded the sale of its Holiday Villa Beach Resort and Spa Langkawi to Plenitude Bhd for RM145 million. The transaction with Plenitude's subsidiary, Plenitude Gateway Sdn Bhd, which was agreed upon last June, results in a RM45 million gain for ARREIT. Additionally, the disposal positively impacts ARREIT's gearing, reducing it to 43.5% from the previous 45% as per the last audited figures.