MY Morning Wrap | YTL Power Hits New High, Boosts Parent YTL Corp's Valuation
Good morning mooers! Here are things you need to know about today's market:
●Tech sector retreat drives continued slide in major US stock indices
●Ambank research projects strong FBM KLCI performance despite economic challenges
●Brighter horizons for Malaysian manufacturing in 2024
●Malaysia's REIT sector set for growth amid tourism revival
●Stocks to watch: YTL Power, YTL, Maybank
-moomoo News MY
Wall Street Summary
Tech giants led the decline in stocks for a second consecutive day, reversing some of the gains that propelled major indices upward in 2023. $Nasdaq Composite Index (.IXIC.US)$, with its significant tech exposure, dropped 1.2% to 14,592.21, adding to its sharpest daily loss since October. Similarly, the $S&P 500 Index (.SPX.US)$ retreated by 0.8% to close at 4,704.81, and the $Dow Jones Industrial Average (.DJI.US)$ decreased by 0.8%, ending the session at 37,430.19.
Breaking News
Ambank research projects strong FBM KLCI performance despite economic challenges
Ambank Research predicts a positive outlook for the FBM KLCI, targeting a 1,545 point close by year-end fueled by an anticipated corporate earnings growth of 14.4%, led by the oil and gas sector. This forecast aligns closely with Bloomberg's consensus and is further supported by a promising ringgit. While ASEAN peers may see higher earnings growth, Malaysia's index is expected to outperform markets in the US and UK. The research firm suggests strategic sector and stock selection to navigate potential US recession risks and subsidy rationalization impacts. Key sectors like oil and gas and top stock selections are highlighted, with a cautious eye on the ringgit's movement against the dollar in light of US monetary policy.
Brighter horizons for Malaysian manufacturing in 2024
Malaysia's manufacturing sector is showing signs of recovery after a prolonged downturn, with expectations of a rebound in 2024. The potential resurgence, fueled by China's economic recovery and growth in the technology and semiconductor sectors, comes despite a stagnant S&P Global PMI at 47.9 in December 2023. Analysts predict an upswing in corporate earnings and export performance, with the manufacturing sector poised for a 4% growth. Amidst cautious optimism, experts anticipate a stronger year ahead for Malaysia's economy.
Malaysia's REIT sector set for growth amid tourism revival
Malaysia's REIT sector is poised for a buoyant 2024 as a resurgence in travel is expected to benefit retail and hospitality-focused REITs. Hong Leong Investment Bank (HLIB) Research favors Sunway-REIT and Pavilion-REIT, predicting resilience despite domestic demand slowdowns. Tourist arrivals are set to bolster the sector, which has seen contributions of RM49 billion to the economy in the first nine months of 2023. The sector's outlook remains largely optimistic, with prime malls likely to continue attracting affluent shoppers, and industrial properties gaining from strategic economic initiatives.
Stocks to Watch
$YTLPOWR (6742.MY)$: YTL Power International Bhd's stock leaped to a new peak, climbing 9.7% and continuing its upward trend from last year, propelled by robust earnings in its Singapore power segment and promising data center ventures. This surge also elevated its parent company, $YTL (4677.MY)$, to a record RM2.01, enhancing its market capitalization to RM22.04 billion. Closing at RM2.80, YTL Power's valuation rose to RM22.69 billion, marking a significant increase over the year.
$MAYBANK (1155.MY)$: Datuk Fad'l Mohamed has stepped down as CEO of Maybank Investment Bank Bhd, the investment arm of Malayan Banking Bhd. Following his resignation, Tengku Ariff Azhar Tengku Mohamed, the COO, has been named officer-in-charge effective immediately. Fad'l, who joined as deputy CEO in 2015, ascended to the CEO position in 2018.
$KERJAYA (7161.MY)$: Kerjaya Prospek Group Bhd has won a RM170.94 million contract from $E&O (3417.MY)$ 's indirect subsidiary Persada Mentari Sdn Bhd to construct a 45-storey development on Andaman Island, Penang. The project includes a 38-storey serviced apartment with 380 units and associated parking facilities, with a 35-month completion target from January 18, 2024.
$SENDAI (5205.MY)$: Eversendai Corp Bhd has mutually agreed to cancel the acquisition of a liftboat business from Vahana Offshore (M) Sdn Bhd, initially proposed almost four years ago. The termination came about as Vahana Offshore failed to meet the conditions of the agreement set in 2020 for securing satisfactory new financing. Eversendai anticipates no significant financial repercussions from this deal cancellation on its group or subsidiaries.
$EPMB (7773.MY)$: EP Manufacturing Bhd (EPMB) has announced a key partnership through its subsidiary PEPS-JV (Melaka) Sdn Bhd (PJVM) with Great Wall Motor Co Ltd's Malaysian unit for vehicle assembly, securing an eight-year deal. EPMB will initiate the assembly of Great Wall Motor's Haval H6 and Haval Jolion SUV models at its facility in Hicom Pegoh Industrial Park, Melaka, targeting an annual production of 20,000 units by 2028.
$MBRIGHT (2097.MY)$: Meta Bright Group Bhd has received approval from the Majlis Perbandaran Kemaman (MPK) to implement their Solar PV Without Capex Program at Kijal Mall in Terengganu. Their proposal includes complete services from design and financing to operation and maintenance of a 407.8 kWp solar photovoltaic facility on MPK-owned property. With a fixed solar tariff rate of 36 sen per kWh, this 20-year project will boost Meta Bright's order book in sustainable energy solutions by 12% to 3.81MW.
$AIZO (7219.MY)$: Minetech Resources Bhd has named Abang Abdillah Izzarim, son of Sarawak Premier Tan Sri Abang Johari, as its new executive chairman. 45-year-old Abang Abdillah recently took a substantial 15.58% stake in the company, purchasing 240 million shares, prior to stepping into his leadership role.
$JCBNEXT (0058.MY)$: JcbNext Bhd, specializing in digital marketing and advertising, has sold 581,225 shares or a 1.8% stake in Taiwan's 104 Corp from June 21, 2023, to January 3, 2024, amounting to TW$119.86 million (around RM17.67 million). This transaction reduces JcbNext's holding to 18.6% in 104 Corp, with an anticipated net gain of RM9.51 million from the sale.
$PGF (8117.MY)$: PGF Capital Bhd has set forth plans to develop an expansive integrated township with a projected GDV of RM3 billion next to Proton City's Automotive High-Tech Valley in Tanjong Malim, Perak. Spanning 161.87 hectares, the long-term project of 10 to 15 years will feature over 6,000 residential and commercial units, along with dedicated zones for agriculture, aquaculture, eco-tourism, an eco-retreat, and lifestyle communities, such as a retirement and wellness village.
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.
Read more
Comment
Sign in to post a comment
