Home Blog Page 274

Malaysian Islamic Banks To Continue To Outpace Conventional Banks: Fitch Ratings

Fitch Ratings expects the growth of Malaysian Islamic banks to continue to outpace that of conventional banks in the medium term, after financing reached USD190 billion in 2023, cementing the country’s Islamic banking market as the third-largest globally.

The share of Sharia financing rose to 42% of domestic banking system loans, from 41% at end-2022, as banks continued to champion an ‘Islamic First’ strategy.

The sector’s financial performance was relatively steady in 2023, despite the higher rate environment, and we expect the trend to be sustained in the near-term on a stable local policy rate and an economy that we forecast will expand by more than 3% in 2024.

Malaysia will see the entrance of its first Islamic digital bank in 1H24, which will cater to the country’s underserved banking population.

The new entrant is likely to compete aggressively for deposits as it builds its franchise, but we do not expect this to change the industry’s competitive dynamics in the near to medium term.

Stock Picks Of The Day — Taliworks Corporation, TMC Life Sciences, Samchem Holdings, Dayang Enterprise Holdings

Taliworks Corporation is set to resume its uptrend after experiencing a technical breakout above the MYR0.875 immediate resistance, supported by strong trading volume.

RHB Retail Research in a note today (Feb 7) said if the breakout above this level sustains, the stock may trend higher towards the MYR0.96 mark, followed by the MYR1 threshold.

However, a fall below the MYR0.835 support level would invalidate the bullish setup, as the stock would be trading below the 21-day SMA line.

TMC Life Sciences is set for an uptrend continuation after bouncing off the 21-day SMA line and breaking above the MYR0.75 immediate resistance on higher trading volume.

Coupled with a “White Marubozu” bullish candlestick, the bulls are likely to propel the stock towards the MYR0.80 resistance level, followed by the next resistance at MYR0.90.

If the price falls below the MYR0.69 support level, it would signal the beginning of a correction.

Samchem Holdings is set for a bullish rebound following the recent pullback after bouncing off the immediate support level while breaking past the MYR0.625 immediate resistance – forming a “Bullish Marubozu” candlestick.

The buying pressure above the breakout level may propel the stock towards the recent high of MYR0.68, followed by the next resistance at MYR0.72.

On the flip side, a fall below the MYR0.585 support level would negate the bullish setup.

Dayang Enterprise Holdings is likely to resume its uptrend after rebounding from the recent pullback and sustaining its position above the MYR1.94 recent breakout level.

If the bullish momentum persists, the stock may trend higher towards the recent high of MYR2.16, followed by the MYR2.50 threshold.

Conversely, a fall below the MYR1.83 support would trigger downward movement.

Singapore’s DBS Maintains 2024 Guidance, Q4 Profit Beats Forecasts

DBS Group, Singapore’s biggest bank, maintained guidance for net interest income for 2024 at around last year’s levels after posting a 2 per cent rise in fourth quarter net profit, beating expectations.

“While interest rates are expected to soften and geopolitical tensions persist, our franchise strengths will put us in good stead to sustain our performance in the coming year,” DBS Chief Executive Officer Piyush Gupta said in a statement.

Besides maintaining net interest income at around 2023 levels, Gupta expected return on equity (ROE) to be 15 per cent to 17 per cent for this year and fee income growth at double-digit, according to slides accompanying his results.

Full-year net interest margin (NIM), a key profitability gauge, is expected to be slightly below fourth quarter NIM of 2.13 per cent.

Singapore’s banks, the largest in Southeast Asia, are set to post higher profits for the fourth quarter because of higher interest rates, though growth momentum is poised to slow as central banks pivot toward rate cuts and volatile markets weigh on the wealth business.

DBS, the first Singapore lender to report this earnings season, said October-December net profit grew to S$2.39 billion (US$1.78 billion) from S$2.34 billion a year earlier on the back of a 9 per cent increase in total income.

This beat the mean estimate of S$2.37 billion from four analysts, according to LSEG data.

DBS, which is also Southeast Asia’s biggest bank, proposed a final dividend of 54 cents per share and 1-for-10 bonus issue.

The NIM of 2.13 per cent during the quarter was up from 2.05 per cent a year earlier.

Full-year annual profit jumped 26 per cent to S$10.3 billion from S$8.19 billion in 2022. Return on equity climbed to a record high of 18 per cent from 15 per cent a year ago.

Nevertheless, the variable compensation for its CEO and other members of its group management committee was collectively reduced by 21 per cent from the previous year despite record 2023 profits to account for a series of digital disruptions during the year.

Gupta took a deeper cut of 30 per cent, which amounted to S$4.14 million, according to DBS’ statement. – Reuters

Clean air can become a reality for the Global South

Picture credit to Kodda/iStock/Thinkstock

Dr. Soumya Swaminathan is chairperson of the M.S. Swaminathan Research Foundation, which supports the application of modern science and technology for agriculture and rural development, and co-chair of Our Common Air, a global commission on air quality. She was previously chief scientist at the World Health Organization. These views expressed are solely hers.

The air we breathe is a silent but formidable killer. A staggering nine out of 10 people worldwide are exposed to unsafe air, both indoors and outdoors.

This crisis is claiming the lives of 8 million people annually, casting a pervasive shadow over community health and economies globally. The burden of unsafe air, though, falls disproportionately on developing nations, which are grappling with limited resources, a shortage of technical capabilities and equity concerns.

From the frosty winters of New Delhi to the bustling streets of Sao Paulo, bad air is not just a seasonal woe. It is a constant menace to lives and livelihoods, especially for those most vulnerable in society.

If 2023 saw air pollution finally become a topic of discussion in climate negotiations, 2024 must see it addressed and investments flow in.

Beyond immediate mortality, air pollution is a public health emergency, increasing the risk of ailments such as Type 2 diabetes, obesity, systemic inflammation, Alzheimer’s and dementia. Indeed, the International Agency for Research on Cancer categorizes air pollution as a leading cause of cancer.

As a pediatrician, I am especially concerned that growing children, who have smaller airways and lungs, are acutely vulnerable. Poor air quality also casts a negative shadow on people’s mental health and well-being, triggering depression, bipolar disorder and personality disorders. In 2018, the World Health Organization classified air pollution as a key risk factor for noncommunicable diseases globally.

The toll on economies is equally staggering. The World Bank estimates that the annual cost of air pollution-related illness and premature death is in the trillions of dollars globally.

In 2019, the public health cost alone was estimated at $8.1 trillion, or around 6.1% of global gross domestic product. Additional costs include the loss of productive days and pollution effects on agriculture and the overall ecosystem.

The nature of this invisible adversary that crosses borders highlights the urgent need to construct a compelling global case for clean air.

At December’s U.N. Climate Change Conference in Dubai, health was on the table for the first time. This acknowledgment of the issue shows how climate impacts are inseparable from public health and highlights the necessity of reducing greenhouse gases.

While aligning air quality goals with climate objectives is crucial, we must also ensure that clean air is not merely viewed as a byproduct of decarbonization but as an indispensable element of a just climate transition.

The vision of clean air can become a reality because we possess the knowledge, technology and resources to make a change. We only need the political will. In fact, during the early months of the COVID pandemic, cities around the world saw clear blue skies, heard birds singing and witnessed animals roam freely in the streets. The air was cleaner than it had been in centuries.

Our Common Air, a global commission that I co-chair, aims to build an “airshed” of solutions. Announced at COP28 last year, the initiative is a collaborative effort bringing together policymakers, financial institutions, intellectuals, communities and universities. Involved leaders have convened for the first time this week in Bellagio, Italy.

By focusing on the benefits of mitigating air pollution for both health and climate, we aim to unite efforts, leverage resources, create funding channels and establish a pool of viable clean air solutions. The importance of such initiatives becomes evident when considering that only 1% of international development funding and a mere 2% of international public climate finance goes to clean air projects.

For this initiative to succeed, three crucial elements need to come together.

First, we need to bridge the gap between science and action. The evidence is unequivocal: Air pollution is a public health hazard, especially for vulnerable populations.

But the evidence needs to be tailored for different actors. Evidence-based policies and narratives must be developed to raise local awareness about the health risks of air pollution.

Also, even the best interventions need standardized tracking and evaluation. We must measure air quality improvements not just in parts per million but also in dollars, cents and hours. It is essential that we highlight how much cleaner air is worth in terms of increased productivity, reduced health care costs and ecosystem services.

Second, it is imperative to recognize that clean air action is climate action. Air pollution and climate change are intricately linked, with many activities contributing to both.

The momentum behind climate change mitigation efforts presents a unique opportunity to elevate air quality as an integral component of these actions. While the co-benefits of clean air, such as improved public health and reduced health care costs, often take center stage, there are others like improved agricultural yields. It is also crucial to emphasize that clean air is a fundamental goal in itself.

Third, funds must be channeled into cleaner air. Significant investment is required for research and development of cleaner technologies. Clear targets and objectives must be set, and mechanisms for tracking progress, such as a collaborative platform, should be developed. Shifting the narrative from air pollution as a burden to clean air as an invaluable asset can enhance political support and attract investment.

Numbers alone are insufficient. We also need global success stories that shout, “It can be done.”

For instance, as a founding member of the International Solar Alliance, India has partnered with developing countries, providing technical and financial assistance for the adoption of clean cooking technologies like solar cookstoves.

Similarly, the C40 Clean Air Cities declaration, signatories of which include Asian cities such as Jakarta and Bengaluru, signifies a global push to meet WHO air quality guidelines by 2030. Facilitating the transfer of finance, knowledge and technology across borders will be crucial for the success of such initiatives.

Cleaning our air is not solely about reducing pollutants. It is also about building a shared asset that allows children to run free without wheezing, elders to enjoy active lives and communities and workforces to thrive. Clean air ultimately is not a privilege but a right. Every breath we inhale should come as a force of life, not a risk to it.

Singapore Bourse Tipped To End Losing Streak

Mint

The Singapore stock market has finished lower in two straight sessions, sinking almost 55 points or 1.7 percent along the way. The Straits Times Index now sits just above the 3,125-point plateau although it’s due for support on Wednesday.

The global forecast for the Asian markets suggests mild upside, supported by bargain hunting and crude oil prices. The European and U.S. markets were modestly higher and the Asian markets figure to open in similar fashion.

The STI finished slightly lower on Tuesday following losses from the financial shares and properties, while the industrials came in mixed.

For the day, the index lost 8.61 points or 0.27 percent to finish at 3,125.68 after trading between 3,120.05 and 3,132.33.

Among the actives, Ascendas REIT skidded 0.36 percent, while CapitaLand Integrated Commercial Trust jumped 1.02 percent, CapitaLand Investment tanked 1.05 percent, City Developments dropped 0.34 percent, DBS Group slumped 0.63 percent, Hongkong Land sank 0.31 percent, Keppel DC REIT and Yangzijiang Shipbuilding both gained 0.62 percent, Keppel Ltd advanced 0.85 percent, Oversea-Chinese Banking Corporation fell 0.23 percent, SATS spiked 1.42 percent, SembCorp Industries plummeted 1.94 percent, Singapore Technologies Engineering added 0.80 percent, SingTel plunged 1.68 percent, Thai Beverage tumbled 0.98 percent, Wilmar International rallied 0.92 percent and Mapletree Pan Asia Commercial Trust, Mapletree Industrial Trust, Mapletree Logistics Trust, Emperador, Genting Singapore, Yangzijiang Financial, Seatrium Limited, Comfort DelGro and Frasers Logistics were unchanged.

The lead from Wall Street is cautiously optimistic as the major averages opened higher but also spent much of the day in the red before a late rally nudged them all back into positive territory.

By RTTNews Staff Writer   ✉  | Published: 2/6/2024 7:03 PM ET | 

The Singapore stock market has finished lower in two straight sessions, sinking almost 55 points or 1.7 percent along the way. The Straits Times Index now sits just above the 3,125-point plateau although it’s due for support on Wednesday.

The global forecast for the Asian markets suggests mild upside, supported by bargain hunting and crude oil prices. The European and U.S. markets were modestly higher and the Asian markets figure to open in similar fashion.

The STI finished slightly lower on Tuesday following losses from the financial shares and properties, while the industrials came in mixed.

For the day, the index lost 8.61 points or 0.27 percent to finish at 3,125.68 after trading between 3,120.05 and 3,132.33.

Among the actives, Ascendas REIT skidded 0.36 percent, while CapitaLand Integrated Commercial Trust jumped 1.02 percent, CapitaLand Investment tanked 1.05 percent, City Developments dropped 0.34 percent, DBS Group slumped 0.63 percent, Hongkong Land sank 0.31 percent, Keppel DC REIT and Yangzijiang Shipbuilding both gained 0.62 percent, Keppel Ltd advanced 0.85 percent, Oversea-Chinese Banking Corporation fell 0.23 percent, SATS spiked 1.42 percent, SembCorp Industries plummeted 1.94 percent, Singapore Technologies Engineering added 0.80 percent, SingTel plunged 1.68 percent, Thai Beverage tumbled 0.98 percent, Wilmar International rallied 0.92 percent and Mapletree Pan Asia Commercial Trust, Mapletree Industrial Trust, Mapletree Logistics Trust, Emperador, Genting Singapore, Yangzijiang Financial, Seatrium Limited, Comfort DelGro and Frasers Logistics were unchanged.

The lead from Wall Street is cautiously optimistic as the major averages opened higher but also spent much of the day in the red before a late rally nudged them all back into positive territory.

read moreRTTNews1yslide-imageslide-imageslide-imageWhite House Officials Meet State Legislative LeadersOn Reproductive RightsTop Biotech IPOs Of 2021 That Soared As Much As 500%-Share Story
FacebookLinkedInTwitterTelegramWhatsAppCopyAboutLogin

The Dow climbed 141.24 points or 0.37 percent to finish at 38,521.36, while the NASDAQ rose 11.32 points or 0.07 percent to close at 15,609.00 and the S&P 500 added 11.42 points or 0.23 percent to end at 4,954.23.

The choppy trading on Wall Street came as some traders seemed reluctant to make significant moves amid uncertainty about the near-term outlook for the markets after recent volatility.

While the major averages climbed well off Monday’s early lows, fading optimism the Fed will lower interest rates in March continued to hang over the markets.

Fed Chair Jerome Powell has said the central bank is unlikely to cut rates in March and the chances of a rate cut next month have fallen to just 19.5 percent, according to CME Group’s FedWatch Tool.

Crude oil prices climbed higher on Tuesday, extending gains from the previous session after the Energy Information Administration’s said oil inventories may drop by 0.8 million barrels per day in the current quarter. West Texas Intermediate Crude oil futures for March ended higher by $0.53 or 0.73 percent at $73.31 a barrel. – RTT News

Hang Seng Index Futures: Climbing Above The 20-Day SMA Line

The HSIF managed to climb above the 20-day SMA line yesterday to close at 16,180 pts, as the bullish momentum picked up pace.

RHB Retail Research in a note today (Feb 7) said yesterday, the index began trading at 15,555 pts. After setting its foothold at the 15,464 pts day’s low, it progressed higher throughout the session, touching the 16,210 pts day’s high before the close.

In the evening, the bullish momentum followed through, lifting the index 94 pts higher and it last traded at 16,274 pts.

The latest price action saw the index breaking past the 16,000-pt resistance, eyeing to test the 50-day SMA line.

In the event the HSIF climbs above the medium-term SMA line, the bulls will grow stronger.

However, expect strong resistance to emerge at the 17,000-pt level.

This resistance has formed since 15 Dec 2023. As long as the index stays below the 17,000-pt level, the bearish setup is deemed intact.

At this juncture, they keep the negative trading bias.

Traders should retain the short positions initiated at 16,253 pts (the close of 8 Jan).

To minimise the trading risks, the stop-loss threshold is fixed at 17,000 pts.

After the bullish breakout, the nearest support is revised to 15,500 pts, followed by the lower support at 15,000 pts.

On the upside, the first resistance is eyed at 16,400 pts, followed by the next resistance at 17,000 pts.

Additional Support Anticipated For Bursa Malaysia

Bursa Malaysia ticked higher again on Tuesday, one day after ending the two-day winning streak in which it had picked up just 4 points or 0.3 percent.

The Kuala Lumpur Composite Index now sits just above the 1,510-point plateau and it may add to its winnings on Wednesday.

At 9.16am, the FBMKLCI rose +0.26 points to open at 1,512.51.

RHB Retail Research in a note today (Feb 2) said the FKLI’s movement continued its correction trajectory yesterday, experiencing a 1-pt pullback to close at 1,514 pts.

Its movement began trading slightly lower at 1,514.50 pts and fluctuated between 1,510.50 pts and 1,517.50 pts, ending just below the opening level.

As anticipated in our previous note, this correction should persist towards the strong support at 1,500 pts in upcoming sessions before rebounding towards the immediate resistance at 1,530 pts.

The RSI momentum indicator, though mildly lower at 65% from 66%, remains in positive territory – indicating the weak price action is likely temporary with the overall bullish momentum intact.

With the uptrend maintained above the ascending 50- and 200-day SMA lines, we continue to maintain a bullish trading stance.

Traders should hold on to the long positions initiated at 1,455 pts, ie the close of 3 Nov 2023.

To manage the trading risks, the stop-loss threshold is set at 1,450 pts.

The immediate support remains unchanged at 1,500 pts, followed by the 1,480-pt mark.

On the other hand, the first resistance is still pegged at 1,530 pts and followed by the 1,550-pt level.

Malacca Securities (MSSB) said the FBMKLCI (+0.11%) closed higher, despite the mixed performance of
the regional markets, led by buying interest seen within selective Industrial and Consumer Products, and Utilities heavyweights.

On the broader market, the Energy sector (+1.03%) was the leading sector, while the Healthcare sector (-0.28%) fell.

The Day Ahead

The FBMKLCI continued to trade within a rangebound manner ahead of the Chinese New Year long weekend break.

Meanwhile, Wall Street managed to gain momentum
as the US Treasury yields slipped with investors pushing back the expectation of the Fed’s first rate cut by 2H24.

On the Chinese stocks, we noticed a significant rebound
after Beijing ramped up efforts to put a stall in the falling China and Hong Kong stock markets.

With the rebound in global as well as China and Hong Kong stock markets, we believe the buying support may emerge this week on our local stock exchange.

On the commodity markets, Brent oil inched higher as EIA expects the oil inventories to fall in the current quarter on reduced productions from OPEC+ and the US.

Sectors focus: Most of the sectors should be gaining momentum with the focus hovering within the key themes such as (i) the revival of KL-SG HSR mega
infrastructure projects and (ii) the ongoing Johor-region developments.

Also, they lexpect the LSS5 announcements may bode well for solar-related EPCC players on the exchange.

We like Consumer and Telco for their defensive characteristics; the latter may benefit from increased data centres investments in Malaysia.

Bloomberg FBMKLCI Technical Outlook

The FBMKLCI ended higher but still hovering within the consolidation phase.

The technical readings on the key index were mixed, with the MACD Histogram turned negative, while the RSI maintains above the 50 level.

The resistance is envisaged around 1,520-1,530 and the support is set at 1,490-1,480.

S&P 500 Closes Near Session High As Wall Street Attempts To Recoup Record Levels

Stocks rose on Tuesday as Wall Street assessed the latest batch of corporate earnings and the timeline for rate cuts from the Federal Reserve.

The S&P 500 rose 0.23% to settle at 4,954.23, while the Nasdaq Composite inched up 0.07% to close at 15,609.00. The Dow Jones Industrial Average jumped 141.24 points, or 0.37%, to end at 38,521.36.

“The market is trying to make heads and tails out of Powell’s statement” and the latest earnings, said Adam Sarhan, CEO of 50 Park Investment, referring to recent comments from Fed Chair Jerome Powell that dashed hopes for a March cut.

Palantir Technologies surged nearly 31% after the company posted a revenue beat in the fourth quarter, while Spotify Technology gained nearly 4% after topping expectations and posting an increase in Premium subscribers.

Expectations for fast-approaching cuts, combined with strong earnings from the technology behemoths, have contributed to the market’s push higher in recent weeks. However, recent remarks from Federal Reserve Chair Jerome Powell dashed hopes for a March rate cut and indicated that cuts may come much later than previously expected.

Narrow market leadership in recent sessions has also heightened concerns over whether the market can sustain the rally without broader participation.

“We’re on the precipice of some real volatility in the marketplace, and the last two days are very indicative of what’s to come here for at least the next six to eight weeks,” said Philip Blancato, CEO of Ladenburg Thalmann Asset Management.

Tuesday marks around the halfway point of the earnings season, with reports from AmgenChipotle Mexican Grill and Ford after the bell. — CNBC

JPJ Bans Heavy Vehicles Using Roads From 8 Feb

The road transport authority has prohibited all heavy vehicles from using the roads for four days in conjunction with Chinese New Year, which will be celebrated this Saturday which also coincides with the start of school holidays.

Road Transport Department (JPJ) said that the ban will take effect on February 8, 9, 12, and 13, and strict action will be taken against any company or individual who does not comply with the ban.

“This road ban is implemented two days before and two days after Chinese New Year to ensure smooth traffic for those who want to return to their hometowns to celebrate Chinese New Year, as well as school holidays,” it said.

JPJ will be monitoring the highways and will take serious actions if any of these large vehicles including buses violates the law.

NPC Resources To Dispose Sabah Land Worth RM164 Million To Tamaco Plantation

NPC Resources Berhad has announced that its subsidiaries received from Tamaco Plantation Sdn Bhd their acceptance of the Letters of Offer to separate land parcels in Sabah for a collective amount of RM164 million.

The above said land include 6 parcels of palm oil agriculture lands measuring in total 251.324 acres more or less situated respectively in the District of Labuk & Sugut, State of Sabah for a sale consideration of RM5,529,128.00. A second plot of 3 parcel of palm oil agriculture lands measuring in total 4,954.00 acres more or less situated in the District of Labuk & Sugut,
State of Sabah held by BISB, at a sale consideration of RM108,988,000.00. And land measuring in total 2,299.75 acres more or less situated in the same district at a sale consideration of RM50,594,500.00.

Subject to all terms being mutually agreed between the parties, the receipt of Earnest Deposit by the Vendors, the parties shall proceed with the execution of the SPAs within thirty days from the date of acceptance of the Offer(s), or any such extended period to be mutually agreed by the partie

REDTone Bags MAMPU Contract Worth RM398.1 Million

Telecommunication company REDtone announced that the Malaysian Administrative Modernisation and Management Planning Unit (“MAMPU”) has awarded its wholly-owned subsidiary, RENS a MyGovUC 3.0 contract for a period of 60 months at a total contract price of approximately RM398.1 million.

The group said the contract covers the Government’s unified communications including electronic mail system, calendar system, audio & video conferencing, chat & chat spaces, directory management as well as change management including user training, software support, security operation centre (SOC), network operation centre (NOC) and helpdesk covering information security management.

It expects the contract to contribute positively to the future earnings of the group.

Hartalega Turns Profitable For Q3FY23

Rubber glove payer Hartalega reported its Q3 results registering a lower revenue of RM 416 million, a decrease of RM 46 million or 10% from the corresponding quarter in the preceding year (Q3FY23), which the group was primarily attributed to lower sales volume and average selling prices. Despite the lower revenue, the Group registered a higher profit before tax (PBT) of RM 29 million during the quarter as compared to a loss before tax of RM 31 million in Q3FY23.

The improved performance was mainly due to lower raw material costs and utilities expenses, better production efficiency arising from higher capacity utilisation as well as cost savings from the operational rationalisation exercise. In addition, the Group also recorded higher interest income and a reversal of certain provision no longer required during the quarter.

For the 9 months ended 31 December 2023 (9MFY24), the Group registered a lower revenue of RM 1.3 billion, a decrease of RM 584 million or 30.9% from the corresponding period in the preceding year (9MFY23). The drop in revenue was primarily attributed to notable lower sales volume as the industry is still facing supply chain inventory adjustment coupled with a decrease in ASP. The decrease in revenue further led to the operating loss recorded for 9MFY24, albeit partially offset by lower raw material cost and operating expenses during the period.

Despite the lower revenue, the Group recorded a PBT of RM 20 million, mainly attributed to the foreign exchange gain and higher interest income for the period under review.

Looking ahead, the group said global oversupply of rubber gloves is expected to persist even as the sector continues with its
adjustment phase. As such, pressure on average selling prices would remain amid challenging demand supply fundamentals. Notwithstanding, the capacity rationalisation exercises undertaken by certain key domestic manufacturers together with the exit of some smaller players have helped to relieve a certain degree of oversupply pressure in the market.

Bursa Could Suspend Reneuco Share Trading This Week

Reneuco has informed that it has failed to submit its annual report for the year ending September 2023 (“AR 2023”) to Bursa Malaysia Securities Berhad within the stipulated timeframe which under the main market listing requirements could lead to the trading of the stock to be suspended.


In addition to any enforcement action that Bursa Securities may take, Bursa Securities shall suspend the trading in the securities of such listed issuer. The suspension shall be effected on the next market day after the Suspension Deadline.

In view of the above and in the event the company is unable to submit the outstanding AR 2023 on or before 8 February 2024, trading in the above Company’s securities will be suspended with effect from 9.00 a.m., Friday, 9 February 2024 until further notice.


This comes as if a listed issuer fails to issue the outstanding financial statements within 6 months from the expiry of the relevant timeframes, in addition to any enforcement action that Bursa Securities may take, de-listing procedures shall be commenced against such listed issuer.

Cloudpoint Acquires 75% Stake In Unique Central Group For RM27 Million

Cloudpoint Technology Bhd has entered into a binding term sheet for the acquisition of 75% equity interest each in Unique Central Sdn Bhd and Uniqcen Sales and Services Sdn Bhd (collectively, Unique Central Group) for RM26.8 million in cash.

“This strategic move positions Cloudpoint as a comprehensive and end-to-end solutions provider for data centre and cloud needs, allowing its existing and potential customers to source, build, and manage their infrastructure from a single provider,” it said in a statement today (Feb 6).

Unique Central Group has a proven track record as a data centre specialist, and it offers solutions in data centre infrastructure design, construction, integration, monitoring, and sustainability assessment.

The group said subject to the execution of the final sales and purchase agreement, the purchase consideration is RM26.8 million to be satisfied in cash.

“Half of this amount will be paid in equal proportion annually throughout a three-year profit guarantee period, contingent upon the fulfillment of profit guarantee conditions.

“Meanwhile, the vendors of the Unique Central Group will furnish a total profit guarantee of RM14.25 million for the next three years.”

Cloudpoint chief executive officer WH Choong expressed the significance of the acquisition, saying Unique Central Group’s expertise synergises well with our data centre solutions and is highly complementary to our data networking segment.

“It expands our offerings and enables us to deliver end-to-end data centre solutions, including green and sustainable offerings.

“With our combined expertise as a group, we can offer customers a seamless experience with data centre solutions, hybrid and multi-cloud solutions and cybersecurity solutions all under one roof,” he said.

Choong said the group is strategically positioning itself to capture a bigger market share in the growing data centre market, especially from the booming demand of hyperscale data centres currently being built in Johor as well as other potential and planned data centre investment from US tech giants and other cloud services providers.

He added: “This acquisition will contribute to group revenue and earnings, alongside recurring income streams from the Unique Central Group, thereby boosting our financial performance and enhancing shareholder value.”

Awantec Partners With UK-Based Sage To Distribute Cloud-Based ERP Software

AwanBiru Technology Bhd (Awantec) today has entered into a partner agreement with UK-based Sage Group plc (Sage) for the distribution of the latters’s cloud-based next generation enterprise resource planning (ERP) software, Sage X3.

Sage, a global market leader in cloud-based ERP software, is known for Sage X3, a product that provides a secured, simple, and flexible ERP platform, consolidating data in one database for smarter analysis, clearer insights, and stronger business planning.

In the partnership, Awantec will serve as Sage’s business partner to promote, market, distribute and resell Sage X3 products and services exclusively within Malaysia.

“The partnership will leverage Awantec and Sage’s joint expertise to drive innovation and digital transformation for customers and industries, focusing on cloud-based ERP software to help businesses increase productivity and improve processes.

“Building on Awantec and Sage’s ongoing investments and commitment to offer cloud-based solutions, the partnership aims to deliver new products and services,” it said in a statement today (Feb 6).

Awantec said the collaboration will strengthen Awantec’s capability to support national digitalisation especially with the introduction of e-Invoice in Malaysia.

“As announced during Budget 2024 and in line with the Twelfth Malaysia Plan, the government intends to implement e-Invoice in stages in an effort to enhance the efficiency of Malaysia’s tax administration management,” it said.

Awantec chief executive officer Azlan Zainal Abidin expressed its pleasure to partner with Sage in providing new products that will serve today’s digital customers and industries.

“Collaborating with Sage will elevate Awantec’s product offering to our customers in the industry, especially since Sage has already embarked on a partnership with Malaysia Digital Economy Corporation (MDEC) for the National e-Invoicing initiative.

“Awantec is committed to supporting the nation’s digital transformation and digital economy agenda through our 20 years of experience in delivering large scale digital projects and a highly-skilled team.

“We believe that this partnership will benefit both sides and establish new benchmarks for strategic collaborations in the industry,” Azlan added.

Najib’s Pardon May Adversely Impact Institutions And International Perception

Think tank, IDEAS views with grave concern the decision of the Pardons Board on the former Prime Minister Dato’ Sri Najib Razak’s SRC case, for which he was convicted in the court of law. On 2 February 2024, it was announced that his sentence had been halved from 12 to 6 years of imprisonment, and fines imposed on him were reduced to RM50 million ringgit from RM210 million ringgit. 

The sentence was to penalise the former Prime Minister for receiving RM42 million for securing a government guarantee for a RM4 billion loan that the SRC International Sdn Bhd (SRC) obtained from Kumpulan Wang Amanah Persaraan (KWAP). The loan was meant for SRC, a wholly-owned subsidiary of 1MDB, to be a strategic vehicle to hold major stakes in key resources such as coal, aluminium, uranium and iron as well as oil and gas (O&G). The RM42 million was transferred, through complex layering, into his personal bank accounts and used, among other things, to pay credit cards, and to fund charities and political activities.

The RM4 billion loan was given a government guarantee by the federal government led by Najib Razak as Prime Minister and the Minister of Finance, who was also 1MDB Chair and SRC International Advisor Emeritus. As of 28 March 2022, this loan has been fully serviced by the government of Malaysia using taxpayer funds. The SRC is a straightforward case of abuse of power and corruption by a public official who is supposed to be the guardian of public funds. This also serves as a timely and grave reminder that any state-owned enterprise (SOE) loan that is given a government guarantee runs the risk of having to service debt if the enterprise fails.

The decision to reduce the sentence signals that abuse of power and misappropriation of public funds is easily tolerated. IDEAS CEO Dr Tricia Yeoh stated, “The public sees that the Federal Territories Minister and Attorney General, who are appointed by the Prime Minister, both sit on the Pardons Board. With their inclusion, the public may assume that the reprieve would have been considered with agreement from the current political leadership. The decision directly contradicts the Madani government’s commitment to tackling corruption, where in fact Prime Minister Dato’ Sri Anwar Ibrahim had ambitiously set a target for Malaysia to reach the top 25 countries in Transparency International’s Corruption Perception Index (CPI) by 2033. Najib’s crime was directly related to the biggest corruption scandal in the nation’s history. The sentence reduction may, in fact, reverse the positive move Malaysia has most recently achieved in its latest ranking, having moved up four positions to 57th rank.”

Further, the decision has serious consequences for an administration that has publicly stated its intentions to implement institutional reforms. This will immediately erode public trust in the government’s ability to uphold its moral position on any matter related to good governance. 

In addition, this will have negative implications on the perception of the international business community. Among this government’s reform commitments have been the separation of the roles of Attorney General and Public Prosecutor, enacting of the Government Procurement, Freedom of Information, and Political Financing Acts, as well as amending the Whistleblower Protection Act. 

Moving forward, the think tank calls on the government to provide clarity over its position over democracy and good governance. Specifically, how the administration intends to renew its efforts towards combating corruption. Dr Yeoh concluded, “If the government still intends to seriously combat corruption, the  new  National Anti-Corruption Strategy, which is slated to be launched soon, should state clearly what its plans are to strengthen the nation’s institutions so that a case of 1MDB and SRC, which have greatly drained the nation’s financial resources and severely damaged our international reputation, will never again occur.” 

BNM Claims Google Published Inaccurate MYR Exchange Rates

Bank Negara Malaysia has released a statement claiming search engine giant Google published the exchange rate of Malaysian Ringgit against the US Dollar inaccurately.

The Central Bank said the USD/MYR rate, published by Google on 5 February 2024 was misreported on Google as 6.24. However, the high and low trading range for USD/MYR recorded in the onshore interbank market for ringgit was between 4.7480 and 4.7630 on 5 February, as published on the BNM website.

The Bank has advised the public to exercise caution against using unverifiable sources as a reference for the ringgit.

HKSE Soars Jumping 4% With Tech Shares Gaining The Most

Hong Kong’s stock market surged on Tuesday with the benchmark Hang Seng Index jumping 4.04 percent to close at 16,136.87 points.

The Hang Seng China Enterprises Index gained 4.91 percent to end at 5,473.75 points, and the Hang Seng Tech Index soared 6.75 percent to close at 3,243.81 points

During the afternoon major indices surged in Tuesday’s afternoon trading, with the benchmark jumping almost 4 percent to stand above 16,100 points.

Tech shares were among the biggest winners, with the Hang Seng Tech Index, representing 30 largest technology companies listed in Hong Kong, soaring more than 6 percent.

Singapore Passes Bill To Strengthen Laws Against Financing Of WMD

Singapore on Tuesday (Feb 6) passed amendments to existing laws to strengthen controls against proliferation financing, or financing aimed at evading sanctions and proliferating weapons of mass destruction.

The changes, proposed under the Prevention of Proliferation Financing and Other Matters Bill, would allow Singapore to adhere to updated requirements set out by the Financial Action Task Force (FATF), a global money laundering and terrorism financing watchdog. Singapore has been an FATF member since 1992 and currently holds the task force’s presidency.

The FATF defines proliferation financing as the act of providing funds or financial services for the manufacture, acquisition, possession, development, export, transshipment, brokering, transport, transfer, stockpiling or use of nuclear, chemical or biological weapons and their means of delivery and related materials, in contravention of national laws or international obligations.

Under the new standards set out by the FATF in 2020, countries and the private sector must assess and mitigate proliferation financing risks related to the “potential breaches, non-implementation or evasion” of targeted financial sanctions.

Apart from the financial sector, the FATF also noted the important role played by other non-financial sectors in combatting flows of dirty money, said the Law Ministry’s (MinLaw) Senior Parliamentary Secretary Rahayu Mahzam as she tabled the Bill for a second reading.

Business activities in these sectors include dealing in precious stones and metals, moneylending, pawnbroking and providing legal services.

“As a regulator of these sectors, MinLaw regularly reviews our laws to ensure that they remain relevant, effective and fully in line with the latest international standards set by the FATF,” said Ms Rahayu.

Examples of the measures include performing risk assessment, as well as developing and implementing internal policies, procedures and controls.

Among others, the Bill included amendments to prevent people from obtaining licences or holding management roles in moneylending and pawnbroking businesses if they were previously convicted of offences relating to the prevention of financial crimes.

CNA

Bursa Malaysia’s Feb 6, 2024 Top Gainers And Losers

Advancers led decliners 513 to 452 on the broader market, while 431 counters were unchanged, 853 untraded, and nine others suspended.

Top Gainers

NOSTOCK NAMESTOCK CODELAST DONECHGVOL (’00)
1NESTLE [S]4707121.300+1.300785
2F&N [S]368928.860+0.4201,114
3PETDAG [S]568121.800+0.3002,540
4APOLLO [S]64325.590+0.290470
5HEIM325524.880+0.2001,310

Top Losers

NOSTOCK NAMESTOCK CODELAST DONECHGVOL (’00)
1IDEAL [S]96873.110-0.38010
2KESM [S]93346.690-0.27048
3MPI [S]386726.580-0.200675
4AMWAY [S]63516.650-0.120534
5KLK [S]244522.100-0.1207,108

Source: Bursa Malaysia