MY Morning Wrap | UEM Sunrise Bhd Launches Enhanced hUb prop App with New Features and Partnerships

Moomoo News MY wrote a column · Jan 12, 2024 08:25

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

●US stocks end mixed amid inflation and jobs data

●Industrial production sees slight growth amid manufacturing downturn.

●Malaysia's Unemployment Rate Hits Pre-Pandemic Level with Positive Outlook

●Malaysia's Manufacturing Sector Sees Sales Decline in November 2023

●Stocks to watch: UEM Sunrise

-moomoo News MY

MY Morning Wrap | UEM Sunrise Bhd Launches Enhanced hUb prop App with New Features and Partnerships

Wall Street Summary

US stock markets experienced slight fluctuations, ultimately closing with minimal changes as investors weighed the implications of recent inflation figures and jobless claims on future interest rate decisions. The $S&P 500 Index (.SPX.US)$ oscillated between 4,739.58 and 4,798.50, closing marginally lower by 0.07%. Meanwhile, the $Nasdaq Composite Index (.IXIC.US)$ ended the day unchanged, and the $Dow Jones Industrial Average (.DJI.US)$ saw a modest increase of 0.04%.

Breaking News

Industrial Production Sees Slight Growth Amid Manufacturing Downturn

In November 2023, the Industrial Production Index (IPI) saw a slight year-on-year increase of 0.6%, boosted by gains in mining and electricity but hindered by a 0.1% dip in manufacturing, which had seen two months of growth prior. This downturn in manufacturing was linked to a decrease in export production, particularly in electronics and petroleum products, though domestic-oriented industries displayed a 5.8% rise. Overall, the IPI's growth from January to November slowed to 1%, with the forecasted expansion for November falling short of the expected 1%.

Malaysia's Unemployment Rate Hits Pre-Pandemic Level with Positive Outlook

Malaysia's unemployment rate has matched the pre-pandemic figure of 3.3% and is projected to maintain or improve upon this trend, backed by China's economic rebound, increased tourism, and robust domestic spending. Kenanga Research and UOB Kay Hian Research both predict the rate to stabilize at 3.3% for the year, bolstered by various domestic drivers and government initiatives. While full employment conditions are being approached, the labour market still benefits from policy support, with TA Research expecting a further drop to 3.2% in 2024. The regularization of undocumented workers through the RTK 2.0 programme is also reinforcing the labour force, signifying sustained growth and stability in the country's employment landscape.

Malaysia's Manufacturing Sector Sees Sales Decline in November 2023

In November 2023, Malaysia's manufacturing sector saw a year-on-year sales reduction of 2.6%, falling to RM155 billion, influenced mainly by sharp declines in the petroleum, chemical, rubber and plastic products sub-sector and the electrical and electronics products sub-sector. Chief Statistician Datuk Seri Mohd Uzir Mahidin noted that the sales value also slipped by 1.1% from the previous month. While export-oriented industries faced a 6.9% downturn, domestic-oriented industries continued to show resilience with an 8.8% increase in sales.

Stocks to Watch

$UEMS (5148.MY)$: UEM Sunrise Bhd has introduced an upgraded version of its hUb prop virtual concierge app at the Kiara Bay Sales Gallery in Kepong. The latest updates feature a refined user interface and expanded merchant partnerships via the Tresor Partnership Program, aimed at enriching the experience of the Tressorian community—members of UEM Sunrise's customer loyalty program. Hasniza Mohamed, the director of digital technology and innovation, highlighted the app's new customization capabilities, allowing users to tailor the app to their specific preferences and needs.

$HUMEIND (5000.MY)$: Hume Cement Industries Bhd (HCIB), part of the Hong Leong Group, has agreed to a RM39.8 million cash deal to sell its leasehold industrial land and buildings in the Prai Industrial Estate, Penang, to Skygate Technology (KL) Sdn Bhd. The transaction, involving the land owned by its subsidiary Hume Concrete Sdn Bhd, is set to realize an estimated net gain of RM32 million for HCIB. The size of the plot was not specified in the announcement, but a review of the company's annual report indicates that the land is approximately 653,400 square feet, which was purchased in 1982 and had a net book value of RM1.32 million as of June 30, 2023. The filing did not state the reason for the property disposal.

$KUB (6874.MY)$: JAG Capital Holdings Bhd, led by Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani, has made a mandatory general offer (MGO) for KUB Malaysia Bhd following the increase of its stake in the company to over 33%. Johari, who holds a controlling 98.75% stake in JAG, clarified that the MGO was not prompted by valuation concerns. JAG has disclosed that it does not plan to maintain KUB's listing status if it acquires more than 90% of KUB shares. The minister emphasized that the MGO was part of a corporate action announced before his ministerial appointment.

$BORNOIL (7036.MY)$: Borneo Oil Bhd, situated in Sabah, has decided to cease its gold mining operations with Syarikat Ratna Pura Sdn Bhd (SRP) and Ricco Mining Sdn Bhd in Mukim Keratong, Rompin, located in Pahang. This decision is aligned with the company's strategic plan to reduce its mining operations within the area. Borneo Oil has concluded its exit by executing a deed of cancellation and novation with Lum Har Chi @ Lum Kong Fatt, Lum Kong Sun, and Zainab Mohd Taib, the vendors, effectively divesting its 90% stake in SRP. The divestiture is valued at RM1.8 million in cash. SRP possesses a mining concession spanning 194.22 hectares in Rompin, a concession that remains valid until March 16, 2025.

$FAJAR (7047.MY)$: The Royal Malaysian Air Force base redevelopment in Butterworth, Penang, undertaken by Fajarbaru Builder Group Bhd, has seen its contract value for the planning phase increased from RM7.36 million to RM16.26 million. The revision accounts for the inclusion of a 50% schematic design report milestone and extends the timeline for delivery phase approval. This amendment was agreed upon by all parties and formalized on December 22, 2023. The contract, awarded by the Australian Department of Defence to a joint venture between Fajarbaru's unit and Avionics Pty Ltd, is part of a strategic partnership with Avionics Holdings Pty Ltd, which is significantly owned by the Nick Brumley Family Trust and the S&R Webb Family Trust.

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

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