Bursa higher at midday on buying interest in financial stocks
KUALA LUMPUR (May 5): Bursa Malaysia was higher at midday on Friday (May 5), lifted by buying interest in some heavyweights led by financial stocks. At 12.30pm, the FBM KLCI had improved 2.77 points to 1,428.76, from Wednesday’s close at 1,425.99. Petronas Chemicals Group Bhd slid 14 sen to RM7.10, CelcomDigi Bhd eased five sen to RM4.39, Tenaga Nasional Bhd added one sen to RM8.99, and IHH Healthcare Bhd improved six sen to RM5.86. The FBM ACE Index was 48.60 points lower at 5,164.70, and the FBM 70 index dipped 65.44 points to 13,459.67. Sector-wise, the Industrial Products and Services Index edged down 1.82 points to 169.63, the Energy Index eased 5.29 points to 828.19, but the Plantation Index recovered 18.12 points to 6,844.73, and the Financial Services Index improved 78.94 points to 15,667.73.
Source:The Edge Markets
May 05, 2023 16:59 UTC
Analysts less sanguine on Bursa Malaysia after lower-than-expected 1Q earnings
KUALA LUMPUR (May 5): Analyst turned less sanguine on stock market operator Bursa Malaysia Bhd, following the release of its first-quarter results, and several rated the stock as a "hold" with target prices (TPs) ranging from RM6.09 to RM6.54. Hong Leong Investment Bank (HLIB) Research also maintained its "hold" call, with a TP of RM6.09, based on 22 times PER pegged to FY2023 earnings per share. “After two prior years of ADTV contraction, we are hopeful for a mild reprieve in FY2023 — we have pencilled in RM2.17 billion. Bursa’s share price was two sen or 0.32% lower at RM6.28 in morning trade on Friday, valuing the local stock exchange at RM5.08 billion. Read also:Bursa Malaysia's 1Q earnings down 17% to RM56m on lower operating revenue
Source:The Edge Markets
May 05, 2023 16:19 UTC
CGS-CIMB sees another hike in 2H2023, bringing the OPR to 3.25%
“We believe there could be one more OPR hike by end-2023 to 3.25%. “Regardless, we maintain our forecast trajectory for monetary policy with end-2023 OPR at 3.25%, implying another (hike of) 25bps in 2H2023,” said the economists. “Bank Negara justified the current rate hike, as there are ‘no signs of excessive tightening affecting consumption and investment activities’. One of the key reasons that Bank Negara paused rate hikes in January was to assess the cumulative OPR adjustments,” Nazmi and Mas Aida explained. Read also:BNM makes surprise 25bps hike in OPR to 3%Local banks announce new interest rates after BNM hikes OPR again
Source:The Edge Markets
May 04, 2023 15:50 UTC
Bursa Malaysia ends marginally lower after surprise interest rate hike
Turnover rose to 3.48 billion units worth RM1.57 billion, from 2.90 billion units valued at RM1.52 billion on Tuesday. The FBM ACE Index was 103.32 points lower at 5,213.30, and the FBM 70 index erased 2.18 points to 13,555.11. The Main Market volume increased to 2.44 billion units worth RM1.39 billion, from 2.05 billion units valued at RM1.30 billion on Tuesday. Warrant turnover narrowed to 290.19 million units valued at RM48.60 million, against 323.60 million units worth RM67.76 million previously. The ACE Market volume grew to 741.52 million shares worth RM216.13 million, versus 529.03 million shares valued at RM152.17 million on Tuesday.
Source:The Edge Markets
May 03, 2023 22:01 UTC
Indices fall 1% as regional banks tumble, investors fret before Fed
The KBW regional banking index fell 5.5% in its biggest daily percentage drop since March 13. Energy shares dropped along with oil prices as investors worried about a potential US debt default. The S&P 500 energy sector dropped 4.3%, the most of any major sector, followed by S&P financials, which fell 2.3%. With first-quarter reports over halfway through, analysts see aggregate earnings for S&P 500 companies declining 1.4% year-on-year, according to IBES data from Refinitiv Tuesday. The S&P 500 posted 17 new 52-week highs and 13 new lows; the Nasdaq Composite recorded 46 new highs and 407 new lows.
Source:The Edge Markets
May 03, 2023 10:34 UTC
HSBC announces US$2b buy-back after strong profit beat
Pre-tax profit tripled to US$12.89 billion, beating an estimate of US$8.64 billion. The jump was partially driven by a reversal of an impairment linked to the delayed sale of its French retail arm and the booking of a gain from its purchase of Silicon Valley Bank’s (SVB) UK business. HSBC is in the midst of a pivot to Asia while shedding unprofitable businesses in North America and Europe. It took over the UK operations of SVB for £1 (US$1.20 or RM5.57) this year, shortly after the failure of the California-based bank. Read also:HSBC CEO says SVB UK will form core of new global tech unit
Source:The Edge Markets
May 02, 2023 18:07 UTC
Maybank IB, MIDF remain positive on banking sector as loan applications, fixed deposits rise
This was despite a moderation in loan growth and current accounts and savings accounts (Casa). Maybank Investment Bank (Maybank IB) said that loan applications increased month-on-month (m-o-m) by 29% in February and 23% in March after contracting from August 2022 to January 2023. “Including bank loans, total industry credit growth was 4.9% y-o-y, versus 5.3% y-o-y in February 2023,” he said. MIDF's top picks for the sector include Public Bank Bhd, with a "buy" call and a target price (TP) of RM5.08, and RHB Bank Bhd (buy; TP: RM6.74). Meanwhile, Maybank IB has made several "buy" calls for the sector, including CIMB Group Holdings Bhd (TP: RM6.60), Hong Leong Bank Bhd (TP: RM24.10), RHB Bank (TP: RM7.10), Hong Leong Financial Group Bhd (TP: RM22.20), AMMB Holdings Bhd (TP: RM5.15), and Alliance Bank Malaysia Bhd (TP: RM4.00).
Source:The Edge Markets
May 02, 2023 16:30 UTC
JPMorgan to acquire failed regional bank First Republic
(May 1): JPMorgan Chase & Co won the bidding to acquire First Republic Bank in an emergency government-led intervention, after private rescue efforts failed to fill a hole on the troubled lender’s balance sheet and customers yanked their deposits. JPMorgan will take over First Republic’s assets, including about US$173 billion (RM771.67 billion) of loans and US$30 billion of securities, as well as US$92 billion in deposits. The transaction makes JPMorgan, the nation’s largest bank, even more massive — an outcome government officials have taken pains to avoid in the past. The bank advised its smaller rival in its attempt to find strategic alternatives, and Dimon was key in marshalling bank executives to inject the US$30 billion in deposits. The bank has been bought and sold several times over the years, with Merrill Lynch & Co paying US$1.8 billion to acquire First Republic in 2007.
Source:The Edge Markets
May 02, 2023 03:32 UTC
China reopening party over as emerging markets slip back to void
And the selloff is spreading to nations with the closest trade ties to China, such as South Korea and South Africa. Investors remain underexposed to China as they seek more consistent policy signals that can sustain the economic recovery. That has sent the ratio between emerging markets and rich nations down 5.6% this year, the biggest retreat since at least 2020. Since then, China’s economic data have indeed shown improvement. The MSCI China Index has tumbled 5.3% in April, erasing this year’s advance.
Source:The Edge Markets
May 01, 2023 06:26 UTC
Cutting ties with China is 'unthinkable', Mercedes-Benz CEO tells BamS
But Ola Kaellenius said decoupling from China, the world's second largest economy, was "unthinkable for almost all of German industry". "The major players in the global economy, Europe, the US and China, are so closely intertwined that decoupling from China makes no sense," he was quoted as saying. German carmakers depend on the Chinese car market, the world's largest, and Mercedes-Benz counts China's Beijing Automotive Group Co Ltd and Geely chairman Li Shufu as its two top shareholders. China accounted for 18% of revenues and 37% of car sales at Mercedes-Benz in 2022 and Kaellenius predicted more to come. "Our sales figures in China are increasing and I am quite optimistic that we will also grow this year.
Source:The Edge Markets
April 30, 2023 19:36 UTC
Perodua says there will be no recall of Axia model
KUALA LUMPUR (April 30): Perusahaan Otomobil Kedua Sdn Bhd (Perodua) has come out to say that there will be no recall of its Perodua Axia model, as it is deemed safe for driving. “We wish to offer some background, insight and perspective on the nature of this announcement, especially in reference to the new Perodua Axia,” Perodua president and chief executive officer Datuk Seri Zainal Abidin Ahmad said in a statement on Sunday (April 30) evening. He explained: “Perodua engaged Daihatsu to carry out safety testing for the new Perodua Axia in Japan, which was witnessed by relevant authorities and agencies for their respective assessment. “We were assured that despite the revelation by Daihatsu, the UN-R95 certification given to the Perodua Axia is intact. This means that the Perodua Axia is safe for driving and no recall will be issued, nor will Perodua stop delivery of this new model to our valued customers.”Zainal Abidin apologised for the distress the matter had caused its customers.
Source:The Edge Markets
April 30, 2023 19:30 UTC
Twitter co-founder Dorsey rues Musk deal: ‘It all went south’
Asked if Musk had proven himself to be the best possible steward for the platform, Dorsey said, “No. “It all went south,” Dorsey wrote on Bluesky, the invite-only Twitter alternative that he’s backing. Dorsey, who was friendly with Musk for years and suggested he get involved with Twitter, was previously publicly in favor of the deal. Last year, he called Musk as the owner of Twitter “the singular solution I trust”. “Payment as proof of human is a trap, and I’m not aligned with that at all,” Dorsey said on Bluesky.
Source:The Edge Markets
April 29, 2023 18:49 UTC
Eddie Ong, Jacky Pang surface among Apex Equity's top 30 shareholders
Choo Meng’s sister, Michelle Ong Tzu Chuen, also owned 2.69 million shares or a 1.33% stake in Apex Equity. Jacky Pang and associatesInterestingly, Sanichi’s Pang owned 1.63 million shares or a 0.81% stake in Apex Equity. The regulator claimed Apex Securities contravened the securities laws “as ACE has become a controller of Apex Securities, when ACE is not a fit and proper person” to do so. Following ACE's divestment of shares, a big block of Apex Equity shares was made available in the market. The new and notable Apex Equity shareholders, namely the Hextar family members and their business associates, Pang and his associates, as well as Proven Venture Capital, controlled a total of 18.58% of Apex Equity as at end March.
Source:The Edge Markets
April 29, 2023 09:59 UTC
Recession worries simmer beneath US stock market rally
NEW YORK (April 29): Economically sensitive areas of the US stock market are flashing warnings over growth, even as major equity indices edge higher. Beneath the surface, however, areas of the market tied to economic sentiment such as transports, semiconductors and small-cap stocks dropped in April, while so-called defensive sectors are outperforming. “People are starting to more defensively position themselves,” said Aaron Dunn, a co-head of the value equity team at Eaton Vance. At the same time, consumer staples and healthcare sectors favoured by investors during uncertain times have rallied in the past month. "They are talking about demand being down, and they are ridiculously important shipping companies,” said Matt Maley, the chief market strategist of Miller Tabak.
Source:The Edge Markets
April 29, 2023 08:04 UTC
DXN aims to raise RM121.6mil from IPO for repayment, working capital
KUALA LUMPUR: Main Market-bound DXN Holdings Bhd aims to raise about RM121.6mil from the public issue portion of its initial public offering (IPO), which will go towards the repayment of bank borrowings and working capital requirements. The maximum IPO price is set at 76 sen per share with the final price to be determined via a bookbuilding exercise. Maybank Investment Bank Bhd is the principal adviser of the IPO, as well as joint global coordinator, joint bookrunner, joint managing underwriter and joint underwriter. CIMB Investment Bank Bhd is joint global coordinator, joint bookrunner, joint managing underwriter and joint underwriter. CLSA Limited and CLSA Securities Malaysia Sdn Bhd are joint global coordinators and joint bookrunners for the IPO whereas RHB Investment Bank Bhd is a joint bookrunner and joint underwriter.
Source:The Star
April 28, 2023 16:45 UTC