MY Morning Wrap | YTL Power and Ranhill Utilities Shares to be Suspended Pending Announcement
Good morning mooers! Here are things you need to know about today's market:
●Fed's Preferred Inflation Measure May Reignite Interest Rate Cut Talk
●Local Retailers Record 11th Straight Week of Net Selling on Bursa Malaysia
●Johor Plantations Group Plans IPO for 2024 Listing on Bursa Malaysia Main Market
●Stocks to watch: YTL Power, MGB, AMMB
-moomoo News MY
Wall Street Summary
The release of the Federal Reserve's preferred inflation measure of consumer inflation on Friday could potentially reignite talks of interest rate cuts. The central bank's interest-rate policy has been fluctuating this year, and the upcoming inflation measure could be a factor in its future path. While the Fed is expected to be in a holding pattern this week, the hawkish policy comments in the May policy meeting minutes revealed that some policymakers had even considered rate hikes due to high inflation reports.
Breaking News
Local Retailers Record 11th Straight Week of Net Selling on Bursa Malaysia
Local retailers have recorded their 11th consecutive week of net selling on Bursa Malaysia, with Genetech Technology, Tenaga Nasional, and Inari Amerton being the top counters with net outflow. According to a fund flow report by MIDF Research, local retailers sold RM281.6 million worth of stocks in the week ending May 24, and have been net selling for nine consecutive trading days. Meanwhile, foreign investors continued their net buying spree for the fifth straight week, purchasing RM474.1 million, while local institutions recorded their fourth straight week of net selling with a total of RM192.5 million.
Johor Plantations Group Plans IPO for 2024 Listing on Bursa Malaysia Main Market
Johor Plantations Group plans to go public in Malaysia's Bursa Malaysia Main Market in the third quarter of 2024. The oil palm plantation firm signed a retail underwriting agreement with RHB Investment Bank, AmInvestment Bank, CIMB Investment Bank, and Affin Hwang Investment Bank for its upcoming IPO. The offering will comprise a public issue of 464 million new shares and an offer for sale of up to 411 million existing shares. The company plans to become an integrated player in the downstream segment, producing speciality oils and fats, and other high-value palm oil products tailored for the food industry. RHB Investment Bank will act as the principal advisor and managing underwriter for the IPO.
Stocks to Watch
$YTLPOWR(6742.MY$ & $RANHILL(5272.MY$: YTL Power International and Ranhill Utilities have both requested for their shares to be suspended from trading on Bursa Malaysia, as well as the structured warrants relating to Ranhill, from 9am on Tuesday, pending an announcement. Speculation has arisen that YTL Power may be eyeing a controlling stake in Ranhill, given the latter's exclusive rights to Johor's water supply and its exposure in the Sabah power sector. Both companies are also actively expanding their presence in the renewable energy sector. As of Monday's market close, shares of Ranhill were up 8.28% while YTL Power rose 0.2%.
$MGB(7595.MY$: Construction firm MGB has been awarded a contract worth RM189.35 million to undertake a multi-phase property development project in the Kuala Selangor district. The project was awarded by Anuar Aziz Architect on behalf of Kemudi Ehsan, an indirect subsidiary of LBS Bina Group. LBS Bina Group is a major shareholder of MGB with a 58.65% stake, making the contract a related-party transaction. The five-phase property development project in Ijok will comprise 38 single-storey low-cost industrial terrace units and 96 two-storey terraced factories in the first phase.
$AMBANK(1015.MY$: AMMB Holdings has reported a 9.4% year-on-year rise in net profit for the financial year ended March 31, 2024, reaching RM1.87 billion despite lower revenue of RM4.65 billion. The bank's net profit for the fourth quarter also rose 11% to RM476.54 million, driven by higher non-interest income. AMMB Holdings declared a dividend of 16.6 sen per share, to be paid on July 11.
$AAX(5238.MY$: AirAsia X has reported a 75.6% decline in net profit for the first quarter ended March 31, 2024, despite a jump in revenue. The decline was attributed to elevated operating expenses, including staff costs, aircraft fuel expenses, maintenance and overhaul, user charges, and aircraft lease expenses. As a result, net profit came down to RM80.12 million from RM327.99 million a year earlier. In contrast, quarterly revenue rose 65.6% to RM908.92 million, primarily generated by increased ticket sales and ancillary revenue. AirAsia X is in the process of taking over its sister company Capital A's aviation business.
$KERJAYA(7161.MY$: Kerjaya Prospek Group has been awarded a contract worth RM567.73 million for the execution and completion of reclamation and dredging works for Seri Tanjung Pinang (Phases 2B and 2C) development in Penang. The contract was awarded to the group's unit, Future Rock, by Tanjung Pinang Development, an indirect subsidiary of Eastern & Oriental.
$PESONA(8311.MY$: Pesona Metro Holdings has secured a RM410.5 million contract to construct two blocks of 52-storey apartments in Bukit Jalil. The contract was awarded by Gaya Kuasa, which is 68%-owned by Chin May Yong, spouse of Pesona's major shareholder and non-executive director Wie Hock Kiong, who also serves as a director at Pesona's major shareholder, Kombinasi Emas. The new contract is expected to contribute positively to the group's earnings and enhance its net assets during the period. The contract value is significantly higher than Pesona's market value of RM128.57 million.
$KIPREIT(5280.MY$: KIP Real Estate Investment Trust, which mainly manages retail properties, plans to acquire the seven-floor DPulze Shopping Centre for RM320 million. The acquisition will enlarge the REIT's total assets by nearly 34% to RM1.29 billion and will be funded by a combination of bank borrowings and proceeds from a planned private placement. Scheduled to be completed by the first quarter of 2025, this acquisition is KIPREIT's largest since its listing on the Main Market of Bursa Malaysia in 2017.
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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