Glove Makers Stand Out As Market Sees Over 800 Counters In The Red

KUALA LUMPUR: Glove makers stood out on Friday, notching some solid gains as investors viewed them as fundamentally strong to deliver impressive earnings with the Top Glove Corp Bhd seeing strong trading interest.

Whether the buying was solely by retail buyers inspired by “bursabets” -- a new subreddit on social news aggregator site Reddit -- is unclear due to the lack of data at market close.

However, comments on bursabets prompted the Minority Shareholders Watch Group (MSWG) to advise retail investors to exercise caution in their dealing of stocks, especially due to recent calls in social media to shore up the share price of certain stocks.

Top Glove jumped to an early high of RM7.12. It closed up 53 sen to RM6.74. It was very actively traded with 161.62 million shares done at prices ranging from RM6.56 to RM7.12.

Hartalega Holdings Bhd rose to a high of RM13.42, before closing at RM12.86, up 66 sen. There were 14.66 million shares done at prices ranging from RM12.32 to RM13.42.

Supermax Corporation Bhd climbed to a high of RM7.16. It ended the day up 24 sen to RM6.80. There were 45.22 million shares transacted between RM6.61 and RM7.16.

However, the gains by the three stocks were unable to offset the weaker FBM KLCI as investors locked in profit ahead of the long weekend, volatile Wall Street and it being month end.

The 30-stock KLCI closed down 14.22 points or 0.9% to 1,566.40. Turnover was 6.53 billion shares valued at RM6.32bil. Decliners beat advancers 869 to 367 while there were 384 counters unchanged.

Kossan rose 19 sen to RM4.45. There were 14.42 million shares done at prices ranging from RM4.30 and RM4.59.

Remisiers said glove stocks were expected to continue to delivery strong earnings growth due to the surge in demand caused by the Covid-19 pandemic.

“These stocks have fundamentals and we expect super normal earnings to continue this year,” said a remisier.

“But I’m unsure if it is driven solely by social media.”

On Jan 4, glove makers were among the stocks hit by shortselling by large institutional players when the regulated shortselling activities were given the go-ahead to resume. However, the stocks had recovered by Jan 8 as the shortsellers had to buy back the shares.

On Thursday, bursabets, a copycat of the controversial US-based "WallStreetBets", has called upon retail traders in a new post to help shore up the share prices of Malaysian glove manufacturers.

It aims to replicate GameStop’s feat on Bursa, alleging trading in the local glove sector has been manipulated by large institutions, which have undervalued the stocks for their own profit.

However, MSWG advised minority shareholders to exercise diligence and be aware of the risks involved in such initiatives.

“Generally, institutional investors tend to have deeper pockets. This is not to underestimate the retailers purchasing power. At the end of the day, it may become an issue of who has deeper pockets and the stamina to sustain their initiatives.

“Secondly, there may be some unscrupulous retailers including ‘stockmarket gurus’ who may unload their shares after having encouraged other retailers to drive up the share prices.

“The Securities Commission has constantly warned members of the public against dealing with unlicensed investment advisers as they could be defrauded or used as part of a market manipulation scheme.

“Eventually, such action by both parties in trying to counter each other will create volatility in the share prices and this may be a risk to the short-term investors,” MSWG said.

Top Glove to vaccinate all staff once Covid-19 vaccine made available

Top Glove Corporation Bhd has pledged to vaccinate all its staff, including foreign workers, once the COVID-19 vaccine is made available.

Executive chairman Tan Sri Dr Lim Wee Chai said this is to ensure uninterrupted production for the long-run besides making sure the good physical and mental health of its employees in order to achieve good financial health of the company.

"We are still waiting for the vaccine from the government and we will be more than happy to get our staff vaccinated as we have over 21,000 employees at 47 factories and 750 production lines as at December 2020,” he said in a virtual courtesy call with High Commissioner of Bangladesh Golam Sarwar and Labour Counsellor of Nepal Embassy Deepak Dhakal, today.

Lim said to enhance the foreign workers' welfare, the company has continuously invested in better accommodation at its facilities in Selangor, Perak, Kedah, Negeri Sembilan, Kelantan, and Johor for its mid-term plan with a capital expenditure of RM195 million.

"We are building and purchasing new workers’ hostels, fully equipped with facilities and amenities that are expected to be completed by 2023,” he said.

Besides that, he said the company is targeting to become a Fortune Global 500 company by 2030 with its growth to be 10 times bigger, achieving US$30 billion sales revenue and scaling up to 150 factories with 100,000 employees.

"This long-term plan could be achieved through technology and innovation, research and development, as well as artificial and human intelligence, supported by 10,000 global talents, researchers and young university graduates,” he added.

Meanwhile, Sarwar hopes Top Glove would continue to ensure the health and wellbeing of its employees, particularly foreign workers, and ensure that they are protected and vaccinated, especially during the unprecedented time of COVID-19 pandemic.

Top Glove’s net profit surged over 20 times to RM2.38 billion in the first quarter of financial year 2021 ended Nov 30, 2020 (Q1FY21) from RM111.43 million in Q1FY20.

The glove giant was previously embroiled in issues relating to workers’ wellbeing and non-compliance with the Workers' Minimum Standards of Housing and Amenities Act 1990 (Act 446).

The company also made headlines after it became Malaysia’s biggest COVID-19 cluster, the Teratai Cluster.

At 3 pm, shares of Top Glove rose 0.45 per cent to RM6.67. - Bernama

How to Build a Stock Portfolio that Pays Increasing Dividends

Value investing is thought of as trying to put a precise value on the low-priced securities of possibly mundane companies and buying if their price is lower. And growth investing is thought of as buying on the basis of blue-sky estimates regarding the potential of highly promising companies and paying high valuations as the price of their potential. 

Rather than being defined as one side of this artificial dichotomy, value investing should instead consist of buying whatever represents a better value proposition, taking all factors into account. All else being equal, favor companies in which management has a significant personal investment over companies run by people that benefit only from their salaries

This explains why you should not invest in stocks or properties by solely looking at prices alone. It would help if you looked into value to make better decisions in investing. 

The value of money relatively differs depending on where, when and how you measure it. It boils down to the following question to somewhat determine the value of money.

Where is your money?

Where do you earn and spend your money?

When do you earn and spend your money?

How do you earn and spend your money?

All your Questions Answered at Felix Consulting 

KLCI rebounds, enroute to ending losing streak

The FBM KLCI made a rebound on Wedneday after yesterday's rally fizzled to end on a negative note for the eighth straight session.

At 12.30pm, the key index had added 12.57 points to 1,587.88, still firmly below the 1,600-point psychological resistance.

However, there is expectation of an advance in certain sectors moving forward, says Malacca Securities Research.

"Based on some corporate earnings results announced yesterday. we expect plantation and consumer electronics stocks to perform well in the near term.

"Also, market players will be watching out for the technology sector as they performed a swift recovery after the selldown," it said.

Heavyweights seeing positive price action included Axiata rising 17 sen to RM3.42, Maybank up 10 sen to RM7.92, Tenaga Nasional gaining 14 sen to RM9.84 and Petronas Chemicals rising 10 sen to RM6.85.

It offset profit-taking in Hartalega, falling 22 sen to RM12.22, Supermax shedding 15 sen to RM6.50 and Top Glove dropping one sen to RM6.19

Top actives on the broader market were MPI up 56 sen to RM32.96, Carlsberg adding 52 sen to RM21.72 and KESM climbing 50 sne to RM16.50.

Asian markets were generally cautious on Wednesday ahead of the US Federal Reserve's monetary policy decision.

Japan's Nikkei was up 0.25% while China's composite index was mostly flat.

SOuth Korea's Kospi was down 0.2% and Hong Kong's Hang Seng rose 0.2%. Australia's ASX200 fell 0.7%.

Appeal allowed against Taman Rimba Kiara Development project

 PUTRAJAYA (Jan 27): The Court of Appeal today allowed an appeal brought by the residents association of Taman Tun Dr Ismail against the government’s plan to develop the Taman Rimba Kiara (TRK).

Court of Appeal Judge Datuk Mary Lim Thiam Suan deemed the High Court's dismissal of their judicial review to challenge the approval for the development at TRK an appealable error which calls for the intervention of the appellate court.

“This is an appealable error that warrants and appellate intervention,” she said.

In doing so, she set aside the High Court’s decision on Nov 28, 2018 which dismissed the residents’ bid to stop the proposed mixed development project in Taman Rimba Kiara.

The other members of the three-judge bench are Datuk Has Zanah Mehat and S Nantha Balan.

In 2014, Yayasan Wilayah Persekutuan (YWP) entered into a joint venture with Memang Perkasa Sdn Bhd, a subsidiary of Malton Bhd to develop a 25-acre site at TRK. TTDI residents had protested against the proposed eight blocks of high-end serviced apartments and one block of affordable housing apartments which had gained conditional planning permission and development order by DBKL.

Following protests by TTDI residents, the then federal territories minister Khalid Samad had proposed a scaled-down development plan to
four blocks of serviced apartments and 204 affordable housing units.

KLCI Tumbles 20 Points Lower; Over 1,100 Stocks In Red

 KUALA LUMPUR: Bursa Malaysia sank into the red at closing with over 1,100 counters falling as heavy selling continued to bash down blue chips and small-cap stocks.

The FBM KLCI closed 20.12 points, or 1.26% lower at 1,576.62. The index opened 3.80 points higher at 1,600.54 this morning.

Market breadth turned negative as losers hammered gainers on a ratio of 1,119-to-231 stocks. Traded volumes stood at 7.48 billion shares worth RM5.16bil.

Dealers noted that investors turned more cautious in the afternoon trading session. They added that the overall sentiment appeared weak amid worries of potential stricter lockdowns as high daily Covid-19 cases.

Adding to the downbeat note, foreign funds are back in selling mode.

Foreign funds turned net sellers last week with net outflow of RM288.13mil against a net buying of RM326.06mil in the preceding week.

The performance of FBM KLCI bucked the trend of regional peers. China’s blue-chip CSI300 index rose 1% to 5,625.92, while the Shanghai Composite Index added 0.5% to 3,624.24.

Hong Kong’s Hang Seng index closed 2.4% firmer at 30,159.01, while the China Enterprises Index also gained 2.4% to 11,960.49.

South Korea’s Kospi index rose 2.18%, to 3,208.99 while Japan’s Nikkei 225 advanced 0.67% at 28.822.29.

Twenty-five of the 30 KLCI-linked counters were in the red with oil and gas stocks among the most negatively impacted.

Petronas Chemicals tumbled 45 sen to RM6.90, Dialog closed 23 sen lower to RM3.03 and Petronas Gas fell 34 sen to RM16.22.

Glove manufacturers are the major stock advancers among the component stocks. Hartalega jumped 68 sen to RM13, Supermax rose 47 sen to RM7 and Top Glove rose 27 sen to RM6.52.

Among the banks, Public Bank tumbled 36 sen to RM21.30, Maybank declined 12 sen to RM7.88, CIMB shed 14 sen to RM3.84, Hong Leong Bank fell 32 sen and RHB closed 11 sen lower at RM5.23.

Meanwhile, the ringgit was quoted at 4.0455, down 0.05% against the US dollar.

Petronas Chemicals, Top Glove down as ringgit strengthens

 Petronas Chemicals Group Bhd, Top Glove Corp Bhd and Supermax Corp Bhd settled lower at Bursa Malaysia’s afternoon break today as a strengthening ringgit against the US dollar led to expectation that export-based companies' US dollar-based revenue will be less in ringgit terms.

At 12:30pm today, Top Glove’s share price fell eight sen or 1.3% to RM6.06, Supermax settled down 10 sen or 1.58% at RM6.21 while Petronas Chemicals dropped 18 sen or 2.39% to RM7.36.

At a glance, these FBM KLCI constituents were among KLCI stocks which had a profound impact on the 30-stock index's trading dynamics earlier today when the gauge fell below 1,600 points.

At 12:30pm, the KLCI settled down 3.37 points or 0.21% at 1,598.17 after rising to its highest so far today at 1,615.22.

In currency markets, the ringgit appreciated to its strongest point against the US dollar so far today at 4.0295 after the exchange rate closed at 4.0435 yesterday.

Today, the exchange rate was between 4.0295 and 4.0430.

The ringgit’s strengthening today was seen to be broad-based against global currencies after Bank Negara Malaysia’s Monetary Policy Committee decided yesterday to maintain the overnight policy rate at 1.75%,

Compared to the Singapore dollar today, the ringgit strengthened to 3.0465 at the time of writing.

Against the euro, the ringgit appreciated to 4.8923.

The ringgit’s strengthening today was seen to be broad-based against global currencies after Bank Negara Malaysia’s Monetary Policy Committee decided yesterday to maintain the overnight policy rate at 1.75%,

Compared to the Singapore dollar today, the ringgit strengthened to 3.0465 at the time of writing.

Against the euro, the ringgit appreciated to 4.8923.

The ringgit strengthened against a weaker US dollar. It was reported that the US dollar declined versus major peers on Thursday as optimism that the new US administration's massive stimulus package will bolster growth sapped demand for safe-haven currencies.

It was reported that riskier commodity currencies were supported as Asian stocks followed US equities in rising to new records after Joe Biden, who has laid out plans for a US$1.9 trillion pandemic relief package, was sworn in as president.

"Risk sentiment is quite positive right now and we expect it to remain so this year, with growth expected to rebound quite strongly,” Reuters quoted Shinichiro Kadota, senior currency strategist at Barclays Capital in Tokyo, as saying.

Ageson appoints BASB as main contractor in mixed development project

 Plywood product maker Cymao Holdings Bhd’s wholly-owned subsidiary, Billion Apex Sdn Bhd (BASB) has received an offer from Ageson Bhd’s unit, Ageson Development Sdn Bhd to be the main contractor in a proposed mixed development project.

BASB will undertake main building and infrastructure works in the project located in Penang.

The parties today entered into a Memorandum of Understanding (MoU) in relation to the appointment of BASB, which marks Cymao’s maiden foray into the construction space.

In a filing with Bursa Malaysia today, the company said it would be seeking shareholders’ approval for the proposed diversification of the principal activities of the group to include construction, project management and related activities at an extraordinary general meeting on Feb 9.

Upon obtaining the shareholders’ approval, the company will enter into a definitive contract in relation to the appointment of BASB as the main contractor to undertake main construction works of the proposed development, with a contract value of RM120 million.

In a separate announcement, Ageson said the MoU demonstrates the board’s initiative in pursuing continued growth in its property development business.

It said the proposed project involved development of a building block comprising 79 units of service apartments, 138-room hotel and one-storey basement car park. - Bernama

Frasers Holdings Rio Tinto Halal Food Becomes New Growth Pillar

Following the announcement of the acquisition of Sri Nona for RM60 million in December last year, Frasers Holdings (F&N, 3689, major consumer products) plans to develop halal food business as a new growth pillar.

Sri Nona is famous for its series of Malay rice dumplings and is also the largest brand of Malay rice dumplings in my country. Its oyster sauce ranks top three in the series.

Frass Holdings Chief Executive Officer Lin You he said in a filing on Bursa Securities that the latest investment will be used to expand more halal food platforms to meet the growing demand for convenient and ready-to-eat products.

He believes that with strong R&D capabilities, this investment will help expand the category of halal food, expand products, launch more innovative products, and increase profit margins.

He said that due to movement control and changes in consumer buying behavior, the company has strengthened its access to the market and channel strategies, by meeting consumers' needs and expectations, and narrowing the distance with consumers, including expanding e-commerce in 2020.

Lin Youhe pointed out that the company recently opened an F&N Life distribution center in Kuala Lumpur to provide consumers with more choices, such as self-service pick-up and next-day delivery services for online shoppers.

"We develop a long-term business and believe in the long-term market potential. Therefore, no matter how big the challenges ahead, we will continue to explore opportunities to improve business performance and profits.

He said that the company will promote growth and cost efficiency under the impetus of three strategies (namely innovation, cost competitiveness and excellent execution).

"As we enter another challenging year, our knowledge, skills, expertise, capabilities, resources and commitments will continue to guide us to achieve our goals."

US Sanctions Put Malaysian Palm Oil Giants In A Conundrum

LAST Thursday, crude palm oil futures breached RM4,000 per tonne for the first time since 2008. But despite this positive upward trend in prices, a cloud still hangs over the industry following another ban by the US Customs and Border Protection (CBP), this time on palm oil and products of Malaysian plantation giant Sime Darby Plantation Bhd on allegations of forced labour. The ban came into effect on Dec 30, 2020.

This would make Sime Darby Plantation the second Malaysian plantation company to be slapped with a CBP ban, the first being FGV Holdings Bhd last September, which saw a withhold release order (WRO) being issued on its palm oil and products also due to allegations of forced labour.

From a financial perspective, exports to the US are insignificant to both Sime Darby Plantation and FGV Holdings. On a whole, exports to the US only make up 3% — equivalent to 494,306 tonnes — of Malaysia’s total exports of palm oil from January to November 2020.

Nevertheless, the CBP ban still places the two companies — and Malaysian palm oil on a whole — in a conundrum due to severe reputational risks as a result of the ban.

“The ban by the US CBP is severe because this is literally a ban by the US government. With the US being the world’s largest economy, its influence is far reaching and this could have an impact on Malaysia’s palm oil trade with some major export destinations such as India and Europe.

“If you look at a company like Sime Darby Plantation, it has major investments in Europe, especially in its downstream activities, and this ban could have huge implications for it as Europe is far more concerned about environmental, social and governance principles compared with the US,” a palm oil industry expert tells The Edge.

He adds that this could also play to the advantage of Indonesian palm oil companies.

“Indonesian plantation companies are definitely going to capitalise on this opportunity to regain some lost market share from their Malaysian competitors. Players with a large interest in Indonesia such as Wilmar International Ltd and Golden Agri-Resources Ltd have investments in the US, which places them in a greater advantage.

“It will be difficult for the Malaysian companies to regain that lost market share, unless they are willing to sell their products at a huge discount,” says the expert.

In its statement on Dec 30 in response to the CBP action, Sime Darby Plantation said that the CBP’s news release does not provide sufficient information to allow the company to meaningfully address the allegations that triggered the issuance of the WRO.

“Nevertheless, we look forward to receiving pertinent information and working with CBP in order to address their concerns and quickly resolve this matter,” it said.

Sime Darby Plantation added that it will continue to engage with Hong Kong-based Liberty Shared, the non-governmental organisation (NGO) that had brought forward the allegations to CBP.

FGV in its response statement to the CBP ban last September said that it is disappointed that such a decision has been made when the company has been taking concrete steps over the past several years to demonstrate its commitment to respect human rights and uphold labour standards.

Note that the petition to CBP against FGV was filed by Grant & Eisenhofer ESG Institute in November 2019.

Malaysia's c.bank seen cutting key rate as coronavirus forces fresh lockdowns

Malaysia's central bank is expected to cut key interest rates to historic lows on Wednesday, according to a Reuters poll, after surging coronavirus infections led the government to impose fresh lockdowns, further curbing economic activity.

Nine out of 15 economists expected Bank Negara Malaysia (BNM) to cut its overnight policy rate to a record low of 1.50%, according to the poll on Monday, with another analyst betting on a bigger 50 basis point cut.

The remaining five expected the central bank to stay put.

Malaysia's economy suffered its first recession since 2009 last year, as the COVID-19 pandemic hit businesses and exports. While the economy showed signs of rebounding in the third quarter as coronavirus curbs eased, analysts expected recent restrictions to deal a fresh blow to economic activity.

The government's current 2021 growth forecast of 6.5% to 7.5% "looks pretty much unattainable," said Mohd Afzanizam Abdul Rashid, chief economist at Bank Islam.

He said he had downgraded his own growth forecast for this year to 4% from 7.3% previously.

"Therefore, it warrants more policy support," said Afzanizam.

One day after the government imposed a two-week lockdown in six states with high coronavirus cases, Malaysia's king also declared a nationwide state of emergency on Tuesday to curb the spread of COVID-19.

Critics of Prime Minister Muhyiddin Yassin have said the emergency declaration was a move to retain control amid a power struggle.

In November, the government unveiled a record 322.5 billion ringgit ($79.75 billion) budget for 2021 to spur economic activity and support growth.

The government rolled out 305 billion ringgit worth of stimulus measures last year, ranging from cash handouts to wage subsidies and loan moratoriums to help the public and businesses weather the pandemic.

The government expects the economy to have contracted 4.5% last year. - Bernama

TNB implements new terms for electricity connection charge

 KUALA LUMPUR (Jan 15): Tenaga Nasional Bhd (TNB) announced today it will implement the Malaysian government-approved enhanced terms for the electricity connection charge and connected load charge effective from today.

A connection charge is the upfront payment made by consumers who require new electricity supply infrastructure or an upgrade of existing infrastructure to cater for additional power supply, according to government-controlled utility TNB.

"The connection charge is imposed as part of TNB’s cost to build the infrastructure for electricity supply," the company said on its website.

Meanwhile, the connected load charge is a mitigating tool to discourage consumers from over-declaring their electricity load requirement, TNB said.

Over-declaration will lead to over-plant up and waste of resources and an increase in the reserve margin, the group said.

"Without the connected load charge, other consumers will have to also pay for the unnecessary higher cost of electricity due to wastage, and this would be unfair to those who do properly declare,” TNB said.

On the connection charge, TNB said that based on the updated terms, consumers are categorised based on supply voltage levels.

TNB said there are three categories, namely the low voltage, medium voltage and high voltage groups.

The low voltage category is for supply voltage of below 6.6kV, while the medium voltage group involves 6.6kV to 132kV, and the high voltage category involves supply voltage of above 132kV, according to TNB.

"[For medium voltage consumers,] the connection charge per kilowatt maximum demand (kW MD) is applicable. The amount to be paid depends on the maximum demand requested by the consumer.

"The connection charge is RM45/kW MD,” TNB said.

On the connected load charge, TNB said a new consumer is subjected to the charge for a period of six years from the date electricity supply is connected.

Meanwhile, an upgrading consumer is subjected to the new connected load charge for a period of five years from the date the additional electricity supply is connected.

In TNB’s statement today, the company said the government recently approved the enhanced terms for the connection charge and connected load charge.

"The connection charge invoice (pro forma) issuance after Jan 15, 2021 is subjected to the new connection charge terms.

"For pro forma issuance before Jan 15, 2021 where the payment has not yet been made, customers may choose one of the following options: Proceed with payment based on the existing pro forma or request TNB to issue a new pro forma with the new connection charge terms,” TNB said.

At 4.05pm on Bursa Malaysia today, TNB’s share price was up four sen or 0.4% at RM10.16, valuing the company at about RM57.91 billion.

The counter had seen about two million shares traded.

AirAsia's digital platform eyes more airline partnerships

Malaysian budget carrier AirAsia Group’s travel, e-commerce and fintech unit airasia.com is in partnership talks with several Middle Eastern and European airlines, its chief executive said on Wednesday.

Airasia.com CEO Karen Chan said the company was working on selling more flights on the online platform.

"Apart from just selling AirAsia flight tickets, we are now selling any airline's flights tickets. We are now in serious discussions with quite a few full-service carriers," Chan said at a CAPA — Centre for Aviation event.

She said the company was working closely with Middle Eastern airlines to drive traffic to pilgrimage destinations.

"Religious travel has taken a huge delay, and already we are getting a lot of requests from customers for pilgrimages," she said.

Airasia.com was also in talks with some European airlines, she said. "Once international borders are open, all of us are banking on pent-up demand," she said without providing details.

Last November, airasia.com announced a strategic partnership with Turkish Airlines for cross-promotion of its flight inventory with AirAsia flights, and offered travel itineraries with discounted fares.

"Now we can pull their content and inventory onto airasia.com's platform," Chan said. The company offers more than 15 lines of products online and via its super-app "to fly, to stay, to shop, to eat", an earlier media statement showed.

With the airline business taking a hit from the coronavirus pandemic, AirAsia Group last year rebranded its digital arm as AirAsia Digital, which houses airasia.com.

Malaysia's flagship budget airline AirAsia Group said last September it is considering raising capital to expand its digital business.

Five stocks indicated negative momentum while one displayed positive momentum

Six stocks at Bursa Malaysia’s afternoon close today. Five stocks indicated negative momentum while one displayed positive momentum.

The stocks with negative momentum were:

Cheetah Holdings Bhd — down two sen at 74 sen

GUH Holdings Bhd — up one sen at 52 sen

Multi-usage Holdings Bhd — down 1.5 sen at 38 sen

PIE Industry Bhd — up 36 sen at RM3.02

PNE PCB Bhd — fell 9.5 sen at 75.5 sen

The stock with positive momentum was:

Silver Ridge Holdings Bhd — up one sen at 60.5 sen

The list of stocks with momentum is generated using a proprietary mathematical algorithm highlighting stocks with a build-up in trading volume and price. The algorithm differentiates between stocks that exhibit positive (+ve) momentum and negative (-ve) momentum.

This list is not a buy or sell recommendation. It merely tells you which stocks are seeing higher than normal volume and price movements.

Keeping Covid-19 At Bay, Vietnam Revs Up Economy

File pic shows a garment factory in Vietnam. Vietnam will strive to achieve a gross domestic product (GDP) growth of about 6.5% in 2021, higher than the target of 6% earlier assigned by its top legislature.

HANOI: Vietnam's success in curbing the coronavirus so far, while its Southeast Asia neighbours struggle, is helping the country power ahead in economic growth and attracting funds, foreign investors, experts and analysts say.

Its strength in containing the pandemic saw it build on the foundations of two free trade agreements signed in 2020, also outpacing peers in luring manufacturers moving production out of China because of the Beijing-Washington trade war. Vietnam was one of the world's few countries to record growth last year - well down on 2019, but still a 2.9% expansion.

Vietnam watchers expect the country to ride high as long as it keeps the virus - resurgent in many countries - at bay. Thanks to rigorously targeted testing, a centralised quarantine programme and early border closures, Vietnam's coronavirus tally stands at just over 1,500 cases and 35 deaths to date - far fewer than any comparable country given its population of nearly 98 million.

"The successful management of the pandemic to date has already enabled the country to capture a larger share of global trade and FDI (foreign direct investment) during 2020," said Carolyn Turk, the World Bank's country director in Vietnam.

Parliament has set an economic growth target of 6% for this year, but Prime Minister Nguyen Xuan Phuc, looking to extend his term or rise up the Communist Party of Vietnam's ranks, said last month that Vietnam would target 6.5%.

At WHA Group, a Thai logistics firm which has expanded its industrial estate business in Vietnam, chairwoman Jareeporn Jarukornsakul said investors who had wanted to relocate operations to Thailand from China had not been able to do so because the coronavirus had spread in Thailand.

While infrastructure and regulatory issues are worse in Vietnam than in Thailand, she said,"Costs are cheap in Vietnam and its government is very quick with investment, allowing provinces to issue their own regulations and investment incentives."

Still, there is much work to be done, even if the country does retain its prowess in handling the coronavirus: Vietnam suffers from a lack of highly-skilled labour, its dated bureaucracy is in need of digitisation and there is an over-reliance on polluting coal imports to fuel development.

But the cocktail of positives flowing through the economy currently has left foreign-invested asset managers in Vietnam able to raise significant amounts, for example, with some reporting oversubscribed funds.

On Monday, Ho Chi Minh City-based Mekong Capital said it had raised $246 million for its largest-ever fund - nearly 25% more than the original target of $200 million.

Dominic Scriven, chairman of Vietnamese asset manager Dragon Capital said a combination of the country's trade deals, more cash in the economy and political stability had underpinned better-than-expected interest across three new funds launched by his firm.

"We were very pleasantly surprised by the market uptake," said Scriven.

PULLING AHEAD

That extra cash, along with savings accounts offering declining interest rates after three cuts in the central bank's policy rate since March, has created a surge in local stock market investors.

The number of new investors has increased so much that the benchmark Ho Chi Minh City Stock Exchange has been forced to halt afternoon trading in order to process the surge.

Development was also boosted by the two free trade deals signed last year: the Regional Comprehensive Economic Partnership (RCEP), the world's largest trading block, and an agreement with Britain modelled on the EU-Vietnam Free Trade Agreement (EVFTA), which Vietnam ratified in June.

Hanoi also has bilateral trade deals with both South Korea and Japan, its largest sources of foreign direct investment, and is a signatory to the 11-country Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The trade deal push has given it an advantage over some of its regional competitors. The EVFTA in particular has "put Vietnam clearly on the map", said Sven Schneider, Chief Executive of the EU-Malaysian Chamber of Commerce.

"Malaysia, on the other hand, is only waking up to this missed opportunity now," said Schneider.

WHA Group's Jareeporn also said the EVFTA had given Vietnam an advantage. "If an industry needs cheap labour, it's definitely going to Vietnam," Jareeporn said.

In the short term, Vietnam is well placed to pull ahead of its regional rivals in 2021, just as it holds a massive Communist Party meeting to select a new leadership later this month.

"It's safe, the government functions smoothly, and in face of impediments like COVID the country rises to the challenge without hesitation and wins," Chad Ovel, partner at Mekong Capital, said.

Supercomnet reclassified under healthcare sector

Supercomnet Technologies Bhd (SCOMNET) will be reclassified under the healthcare sector effective from Jan 11.

It is currently classified under the industrial products and services sector.

Bursa Malaysia in a statement today said the sub-sector for SCOMNET will also be reclassified from industrial, materials, components and equipment to healthcare equipment and services upon the company's request.

"The classification of sector and sub-sector for SCOMNET has been updated based on criteria which take into account, among others, changes in business activity for the company and core business activity contribution to the company's financial results," it said.

The stock number and stock short name for SCOMNET's securities will remain unchanged, it said.

KLCI down 0.78% as banking stocks drag, US equity futures slip

 KUALA LUMPUR (Jan 6): The main index at Bursa Malaysia was down 0.78% at the midday break on Wednesday as banking stocks dragged against the backdrop of slipping US equity futures.

At 12.30pm, the FBM KLCI was down 12.32 points to 1,596.03.

Market breadth was tepid with 469 losers and 253 gainers, while 726 counters traded unchanged. Trading volume was 3.88 billion shares valued at RM2.19 billion.

The top losers included Nestle (Malaysia) Bhd, Heineken Malaysia Bhd, Carlsberg Brewery Malaysia Bhd, Hong Leong Financial Group Bhd, Petronas Dagangan Bhd, Hong Leong Bank Bhd, Greatech Technology Bhd and Malaysian Pacific Industries Bhd, CIMB Group Holdings Bhd, Malayan Banking Bhd, Public Bank Bhd and RHB Bank Bhd.

The actively traded stocks included Iris Corp Bhd, Vortex Consolidated Bhd, DGB Asia Bhd, Yong Tai Bhd, Bumi Armada Bhd, Sapura Energy Bhd and Puncak Niaga Holdings Bhd.

The gainers included Kobay Technology Bhd, Toyo Ventures Holdings Bhd, Gets Global Bhd, IQ Group Holdings Bhd, Pharmaniaga Bhd and KPower Bhd.

Bloomberg said US equity futures slipped with Treasuries on Wednesday as votes were counted in key elections in Georgia that could have implications for President-elect Joe Biden's agenda.

Asian stocks were little changed, it said.

Hong Leong IB Research said in the absence of immediate-term drivers, KLCI may continue to extend consolidation (weekly supports: 1562-1575; resistances 1618-1638), as investors digest more news flow about the resurgence of Covid-19 pandemic, vaccine distributions and challenges faced by nations in vaccinating their citizens coupled with the resumption of RSS.

"Nevertheless, optimism on economic recovery amid the multiple Covid-19 vaccine breakthroughs, a combination of continuing fiscal and monetary stimulus, the low-interest rate environment and China's firmer economic recovery will continue to underpin interests in the equity market.

"Meanwhile, surging oil prices, soybean prices and FCPO may provide some trading interests among the O&G and plantation stocks," it said.

KLCI down 0.78% as banking stocks drag, US equity futures slip

Source - Edgemarkets

The main index at Bursa Malaysia was down 0.78% at the midday break on Wednesday as banking stocks dragged against the backdrop of slipping US equity futures.

At 12.30pm, the FBM KLCI was down 12.32 points to 1,596.03.

Market breadth was tepid with 469 losers and 253 gainers, while 726 counters traded unchanged. Trading volume was 3.88 billion shares valued at RM2.19 billion.

The top losers included Nestle (Malaysia) Bhd, Heineken Malaysia Bhd, Carlsberg Brewery Malaysia Bhd, Hong Leong Financial Group Bhd, Petronas Dagangan Bhd, Hong Leong Bank Bhd, Greatech Technology Bhd and Malaysian Pacific Industries Bhd, CIMB Group Holdings Bhd, Malayan Banking Bhd, Public Bank Bhd and RHB Bank Bhd.

The actively traded stocks included Iris Corp Bhd, Vortex Consolidated Bhd, DGB Asia Bhd, Yong Tai Bhd, Bumi Armada Bhd, Sapura Energy Bhd and Puncak Niaga Holdings Bhd.

The gainers included Kobay Technology Bhd, Toyo Ventures Holdings Bhd, Gets Global Bhd, IQ Group Holdings Bhd, Pharmaniaga Bhd and KPower Bhd.

Bloomberg said US equity futures slipped with Treasuries on Wednesday as votes were counted in key elections in Georgia that could have implications for President-elect Joe Biden's agenda.

Asian stocks were little changed, it said.

Hong Leong IB Research said in the absence of immediate-term drivers, KLCI may continue to extend consolidation (weekly supports: 1562-1575; resistances 1618-1638), as investors digest more news flow about the resurgence of Covid-19 pandemic, vaccine distributions and challenges faced by nations in vaccinating their citizens coupled with the resumption of RSS.

"Nevertheless, optimism on economic recovery amid the multiple Covid-19 vaccine breakthroughs, a combination of continuing fiscal and monetary stimulus, the low-interest rate environment and China's firmer economic recovery will continue to underpin interests in the equity market.

"Meanwhile, surging oil prices, soybean prices and FCPO may provide some trading interests among the O&G and plantation stocks," it said.