9 stocks with momentum at Bursa Malaysia's

Highlighted 19 stocks with momentum at Bursa Malaysia's afternoon close today. One stock showed positive momentum while 18 stocks displayed negative momentum.

The stock with positive momentum was:

Ralco Corp Bhd – up 21 sen at RM1.13

The stocks with negative momentum were:

Bertam Alliance Bhd – up two sen at 16 sen

Cabnet Holdings Bhd – up one sen at 25 sen

Chin Hin Group Property Bhd – up two sen at 88 sen

Cuscapi Bhd – up four sen at 25 sen

Eastland Equity Bhd – up one sen at 14 sen

Fima Corp Bhd – unchanged at RM1.78

Key Asic Bhd – up half a sen at 11 sen

Kia Lim Bhd – up 1.5 sen at 37 sen

KYM Holdings Bhd – up half a sen at 40 sen

Malaysia Smelting Corp Bhd – up 24 sen at RM2.73

Pelikan International Corp Bhd – up 1.5 sen at 38 sen

Pelangi Publishing Group Bhd – up half a sen at 39 sen

Puncak Niaga Holdings Bhd – up three sen at 41 sen

Sapura Industrial Bhd – up 13 sen at 99 sen

Sarawak Cable Bhd – up four sen at 48.5 sen

Scope Industries Bhd – up 1.5 sen at 32.5 sen

Sealink International Bhd – up one sen at 18 sen

Widetech (Malaysia) Bhd – up 37 sen at RM1.62

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.

The share price may move up or down from this point. But the "+ve" (suggesting a rising price trend on volume) and "-ve" (suggesting a falling price trend on volume) indicators should give readers a better idea of what the market is buying and when to sell. Note also that momentum generally only persists for a short period of time.

However, each stock has an accompanying fundamental score and valuation score to help readers evaluate the attractiveness of the stocks, if they want to ride the momentum.

Bursa Malaysia Securities Bhd has queried Grand Hoover Bhd due to the sharp rise in the price and volume of shares recently.

At 4.06pm, it was up 40 sen to RM1.76. There were 1.91 million shares done at prices ranging from RM1.47 to RM1.76.

Shares of the property development company had surged from 76 sen on Feb 2.

The regulator advised investors to take note of the company’s reply to the unusual market activity query which will be posted at Bursa Malaysia’s website when making their investment decision.

It directed the company to enquire with its directors, major shareholders and such other relevant persons whether there is any corporate development relating to your group’s business and affairs that has not been previously announced that may account for the trading activity including those in the stage of negotiation/discussion.

It also queried the company whether there was any rumour or report concerning the business and affairs of the group that may account for the trading activity.

KLCI gives up most gains as glove makers retreat

The main index at Bursa Malaysia gave up some of its gains at the midday break today, as glove makers dominated the losers' list.

At 12.30pm, the FBM KLCI was up 1.96 points to 1,580.59. The index had earlier risen to a high of 1,586.06.

Gainers led losers by 463 to 306, while 716 counters traded unchanged. Trading volume was 4.16 billion shares valued at RM2.36 billion.

The gainers included Nestle (Malaysia) Bhd, Tasco Bhd, Seni Jaya Corp Bhd, Press Metal Aluminium Holdings Bhd, Woodlandor Holdings Bhd, Knusford Bhd, Sarawak Consolidated Industries Bhd, Telekom Malaysia Bhd and Techbond Group Bhd.

The actively trade stocks included Dagang NeXchange Bhd, Luster Industries Bhd, Trive Property Group Bhd, AT Systematization Bhd, Pasukhas Group Bhd, HB Global Ltd, Yong Tai Bhd and Sanichi Technology Bhd.

The decliners included Hartalega Holdings Bhd, Supermax Corp Bhd, KESM Industries Bhd, Top Glove Corp Bhd, See Hup Consolidated Bhd, Amtel Holdings Bhd, Genetec Technology Bhd and Kosssan Rubber Industries Bhd.

Reuters said Asian shares hovered near record highs today while oil edged closer to US$60 a barrel on hopes a US$1.9 trillion Covid-19 aid package will be passed by US lawmakers as soon as this month just as coronavirus vaccines are being rolled out globally.

MSCI's broadest index of Asia-Pacific shares outside Japan was last up 0.3% at 717.2 after climbing as high as 730.16 late last month, it said.

Hong Leong IB Research said tracking the rally on Wall Street and the allowance of all economic sectors to open (with tightening standard operating procedures) coupled with the road map of Malaysia's National Immunisation Plan, KLCI could still retest the stiff 1,600 psychological barrier in this Chinese New Year holiday-shortened week.

"However, further gains are likely to be capped amid elevated Covid-19 infections and the start of the February reporting season.

"Given the potential for volatility, a balanced portfolio remains appropriate.

"Hence, we would adopt a more balanced approach in our top picks with a combination of recovery plays, volatility, defensives, value and sold down pandemic beneficiaries," it said.

Parlo: Business not affected by the Myanmar coup

Parlo Bhd, a tourism management and service company, pointed out that the global migration service business is not affected by the Myanmar coup.

Executive Director Zheng Liansheng pointed out that as the situation remains stable and calm, there is no sign that the government's migration policy will change, and the company's business remains as usual.

In October last year, the company signed a final agreement with Myanmar Diamond Palace Group of Companies Ltd to provide tourism, ground handling, dormitories and medical inspections for migrant workers departing and returning from Myanmar.

Since the coup d'etat was launched on February 1, Myanmar is currently under the control of the military and is in a state of emergency.

Zheng Liansheng said in a statement today: "Nevertheless, we believe that migrant workers, who are often the only breadwinner of the family, will continue to work abroad and continue to take care of their families."

At the same time, Diamond Palace Chairman Datuk Thein Than assured that migrant workers working outside Myanmar and those planning to work overseas will not be affected by the current situation in the country.

"They have made great contributions to Myanmar through foreign exchange remittances."

He added: "At the micro level, this has a positive effect on the health care, entrepreneurship, education and overall economic development of the recipient family."

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

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%.

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.

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.

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.

Top Glove commits to special dividend of 20%

 

The world’s largest glove maker said the special dividend was in addition to its existing dividend policy of a 50% dividend payout ratio on its profit after tax and minority interests for the second, third and fourth quarters of financial year 2021.

MAINBOARD-LISTED Top Glove Corporation has committed to a special dividend of 20 per cent, in addition to its existing dividend policy of a 50 per cent payout ratio on profit after tax and minority interests (PATMI).

The total 70 per cent dividend payout ratio on PATMI will be applicable for the second quarter to the fourth quarter of FY2021, the Malaysia glove maker said in a bourse filing on Monday.

This is in consideration of its "good profit performance and strong cash flow", as well as to reward shareholders, Top Glove said.

At 3.47pm, it was trading at RM5.65, down 47 sen with nearly 320 million shares done.

It hit an early low of RM5.23.

The FBM KLCI was down 18.90 points or 1.16% to 1,608.32. Turnover was 6.04 billion shares valued at RM4.85bil.

Decliners hammered advancers 1,000 to 289 while 307 counters were unchanged.

Top Glove and other glove makers fell sharply in early trade, triggered by the upliftment of the temporary suspension of regulated short selling (RSS) by the Securities Commission (SC) and Bursa Malaysia Bhd.

Bursa joins Asean markets to end morning weaker

Asean markets slumped on the final trading day of 2020 while at Bursa Malaysia, the FBM KLCI was weighed down by losses in Sime Darby Plantation, Maybank and Top Glove.

At 12.30pm, the KLCI was down 9.04 points or 0.55% to 1,635.37. Turnover was lacklustre at 2.98 billion shares valued at RM2.98bil. The broader market was cautious with 560 losers to 402 gainers and 484 counters unchanged.

China's Shanghai Composite rose 0.83% and Hong Kong's Hang Seng Index added 0.31% while Taiwan's Taiex gained 0.14%. South Korea and Japan markets were closed.

Among Asean markets, Singapore's Straits Times Index slipped 0.89%, Thailand's SET fell 0.86% and Jakarta's Composite 0.95% lower.

Sime Plantation fell 17 sen to RM5 after it was accused of using forced labour prompting the US to ban imports of its palm oil. It erased 1.79 points from the KLCI.

Crude palm oil for third month delivery fell RM11 to RM3,577 per tonne.

KL Kepong lost 20 sen to RM24, IOI Corp was flat at RM4.40 and also unchanged was PPB Group at RM18.86.

Among the banks, Maybank fell five sen to RM8.52 and erased 0.86 of a point, CIMB five sen lower at RM4.33, Hong Leong Bank 18 sen to RM18.38 but Public Bank rose eight sen to RM20.78. Aeon Credit lost 16 sen to RM11.92.

As for glove makers, Top Glove fell seven sen to RM6.05 and erased 0.87 of a point, Hartalega six sen lower at RM12.14 and Supermax three sen to RM5.95. Kossan fell 15 sen to RM4.45.

Get Free Signal for KLSE Makret

Tenaga shed two sen to RM10.50, GentingM three sen to RM2.70 and Genting two sen to RM4.51.

US light crude oil eased three cents to US$48.37 and Brent one cent to US$51.62.

Petronas Chemicals fell five sen to RM7.45, Petronas Dagangan and Petronas Gas unchanged at RM21.40 and RM17.34. Dialog shed two sen to RM3.45.

Toyo Ventures was the top gainer, up 23% ot 39 sen to RM1.69 and its warrants 30 sen to RM79.5 sen.

MPI added 32 sen to RM25.20 and JF Tech 17 sen to RM4.99.

KLCI bucks regional trend, retreats on mild profit-taking activity

The main index at Bursa Malaysia bucked the regional trend and retreated at midday break today on some mild profit-taking activity.

At 12.30pm, the FBM KLCI was down 6.16 points to 1,637.74. The index had earlier risen to a high of 1,645.76.

Losers led gainers by 383 to 326, while 803 counters traded unchanged. Trading volume was 5.13 billion shares valued at RM2.28 billion.

The losers included Hartalega Holdings Bhd, Fraser & Neave Holdings Bhd, Supermax Corp Bhd, Greatech Technology Bhd, DKSH Holdings (M) Bhd, Batu Kawan Bhd, Top Glove Corp Bhd, JF Technology Bhd and Sarawak Consolidated Industries Bhd.

The actively traded stocks included Mestron Holdings Bhd, Iris Corp Bhd, AT Systematization Bhd, Puncak Niaga Holdings Bhd, Kanger International Bhd, Melewar Industries Bhd, Hiap Teck Venture Bhd and Sarawak Cable Bhd.

The gainers included Nestle (M) Bhd, CN Asia Corp Bhd, Carlsberg Brewery Malaysia Bhd, KESM Industries Bhd, Aeon Credit Service (M) Bhd and Petronas Gas Bhd.

Bloomberg said most Asian stocks rose with US and European futures Tuesday after the House backed higher stimulus checks following President Donald Trump’s signing of the virus relief bill.

The US dollar slipped with Treasuries, it said.

Inter-Pacific Research Sdn Bhd said Malaysian equities were mostly rangebound yesterday after giving up most of their intraday gains on quick profit-taking activities.

In its daily bulletin today, the research house said that for the most part, however, the market’s condition was indifferent due to the lack of direction and relatively light participation, even as it was an improvement over the previous session.

Nevertheless, it said market breadth was positive as retail players took the opportunity to trade on some of the laggards in the calmer market condition.

Inter-Pacific Research said it sees the mild bargain-hunting activities continuing over the near term, buoyed by the positive overnight performances of key global equity indices that rode on the US President’s signing of an economic stimulus package.

“This could allow the key index to build on the gains attained yesterday as we also think that rotational buying could pick up following the recent market consolidation.

“However, with market participation still on the thinner side, we also think that the gains may be modest with end-of-day profit-taking actions possibly limiting the upsides.

“As such, the 1,650 level continues to be the immediate hurdle, followed by the 1,660 level. The supports, on the other hand, are at 1,640 and 1,631 respectively.

“Conditions on the broader market are also looking positive with retail players continuing to nibble on selected lower liners that could provide more near-term impetus for these stocks to gain ground. As it is, retail players are positioning their portfolio for further upsides at the start of the new year, riding on hopes for an improved corporate earnings recovery in 2021,” it said.

ESG concerns take some shine off Top Glove

 

ANALYSTS remain positive on Top Glove Corp Bhd despite the environmental, social and governance (ESG) concerns that have emerged over the glove maker’s staff living quarters.

While they imputed a discount on their target prices for Top Glove because of this, most of the analysts have maintained their bullish calls on the company following the release of its results for the first quarter ended Nov 30 (1QFY2021) — it posted a record net profit of RM2.38 billion on its highest ever quarterly revenue of RM4.76 billion.

RHB Investment Bank, for example, has maintained its “buy” call on Top Glove but ascribed a 10% ESG discount to its target price and cut its ESG score for the group to 2.78 (from 3.22) on lower points for the Social or “S” component.

CGS-CIMB, while maintaining its “add” call, has cut its target price on the rubber glove giant by 11% to RM8.90 per share from RM10 previously. The cut was premised on a lower price-to-earnings ratio of 16 times for calendar year 2022 from 17 times previously to account for ongoing concerns over the ESG issues, particularly in relation to its foreign workers.

Maybank Investment Bank’s target price of RM8.65 for Top Glove assumes a higher weighted average cost of capital as it takes into consideration the social compliance issues.

Meanwhile, the Employees Provident Fund (EPF), which emerged as Top Glove’s substantial shareholder on Sept 21 with a 5.05% stake, has been trimming its shareholding in the glove maker. According to Top Glove’s filing with Bursa Malaysia on Dec 10, EPF sold 1.5 million shares on Dec 7, leaving the pension fund with a 5.56% direct stake comprising 445.65 million shares in Top Glove. Since Dec 1, EPF has divested a total of 22.14 million shares in the company.

Industry observers believe ESG concerns may be the main reason for EPF’s divestment of Top Glove shares.

Weak sentiment continues to weigh on KLCI at midday

Worries over a new strain of Covid-19, coupled with weak oil prices, continued to weigh on investor sentiment, dragging Bursa Malaysia to end the morning session broadly lower.

At the lunch break, the benchmark FBM KLCI was 16.94 points or 1.03% lower at 1,630.95 after moving between 1,627.22 and 1,647.36 throughout the morning session.

The overall market breadth was negative with losers overtaking gainers 989 to 232, while 375 counters were unchanged, 541 untraded and 17 others suspended.

Volume stood at 5.45 billion units worth RM2.65 billion.

Malacca Securities Sdn Bhd said in a note that the negative sentiment from the new virus strain might spill over to stocks on the local front.

The research firm expected trading interest to revolve around construction and building materials as well as property sector amid the potential Kuala Lumpur-Singapore High Speed Rail (HSR) news flow coupled with the rising building material prices.

“Also, we expect the vaccine distribution candidate may surface as the health minister stated that [the government] will try to get all the vaccine supplies by the first quarter of 2021,” it said.

Among the heavyweights, Malayan Banking Bhd (Maybank) and IHH Healthcare Bhd fell 11 sen each to RM8.37 and RM5.64 respectively, Public Bank Bhd lost 18 sen to RM20.48, Tenaga Nasional Bhd (TNB) erased 10 sen to RM10.58 and Petronas Chemicals Group Bhd (PetChem) declined 21 sen to RM7.33.

However, Top Glove Corp Bhd rose one sen to RM6.63 and Hartalega Holdings Bhd gained six sen to RM12.56.

Among the actives, Techna-X Bhd trimmed two sen to 14.5 sen, Iris Corp Bhd added one sen to 40 sen, Bintai Kinden Corp Bhd increased 9.5 sen to 76 sen, and Vivocom Intl Holdings Bhd fell nine sen to 89 sen.

On the index board, the FBM Emas Index was 132.55 points lower at 11,716.27, the FBMT 100 Index lost 128.07 points to 11,486.1, the FBM Emas Shariah Index erased 106.12 points to 13,180.42, the FBM 70 contracted 201.01 points to 14,957.31, and the FBM ACE reduced 45.22 points to 10,433.23. 

The Industrial Products and Services Index shrank 2.69 points to 172.27, the Plantation Index gave up 47.26 points for 7,310.93 and the Financial Services Index dropped 224.0 points to 15,159.58.

Meanwhile, Bursa in a statement announced the transfer of Greatech Technology Bhd's shares from the ACE Market to the Main Market under the technology sector.

In a statement, it said the transfer would take effect on Dec 28, 2020 at 9am.

Latitude Tree, Metronic, My EG, Dutch Lady, Affin Bank, Eco World, Eco World International, VS Industry, Scientex, LKL International and Perak Corp

KUALA LUMPUR (Dec 17): Based on corporate announcements and news flow today, companies that may be in focus on Friday (Dec 18) include: Latitude Tree Holdings Bhd, Metronic Global Bhd, My EG Services Bhd, Dutch Lady Milk Industries Bhd, Affin Bank Bhd, Eco World Development Group Bhd, Eco World International Bhd, VS Industry Bhd, Scientex Bhd, LKL International Bhd and Perak Corp Bhd.

Latitude Tree Holdings Bhd has proposed a one-for-one bonus issue of up to 97.16 million new shares plus an employees’ share scheme (ESS) of up to 10% of the total issued share capital of the company.

The furniture maker said the actual number of bonus shares to be issued will depend on the total issued shares on the entitlement date, which will be determined and announced at a later date upon receipt of all relevant approvals. It said the ESS is for eligible directors and employees of the company and its subsidiaries.

Its board of directors expects the proposals to be completed by the second quarter of 2021.

Metronic Global Bhd plans to raise up to RM33.94 million — almost a quarter of its current market capitalisation of RM141.52 million — through a private placement of up to 373.74 million shares or 30% of its issued shares, mainly to fund its existing and future engineering projects. The issue price of the new shares and the third-party investors will be decided at a later date, the company said.

The bulk of the proceeds, or RM32.65 million, will be used for existing and future engineering projects. Its engineering project order book stood at RM112.82 million at the latest practicable date, according to the filing to Bursa Malaysia.

My EG Services Bhd (MyEG) has cancelled 100 million of its treasury shares. The group’s total number of treasury shares held after the resale or transfer stood at 53.66 million. Its adjusted issued capital after the cancellation is 3.67 billion shares.

Dutch Lady Milk Industries Bhd said it will invest RM340 million to construct new manufacturing facilities on three parcels of land in Bandar Enstek, Negeri Sembilan that it bought this year. The group said the facilities will include manufacturing and warehousing facilities, support facilities and office facilities. They will be used for the manufacturing of the group's dairy products with capacity and space for the manufacturing of other variations that it may produce.

The facilities will be constructed between 2021 and 2025, the group said, adding that it will use internal funds for the investment.

Affin Bank Bhd has confirmed that two more of its employees at its headquarters have tested positive for Covid-19 and they are now undergoing treatment.

The bank said it will be providing the employees and their families with the necessary support and guidance while all other staff in Menara Affin who had immediate contact with the affected staff will be screened and tested for Covid-19.

It did not say that the headquarters will be closed but clarified that the affected office space as well as common areas such as elevators and toilets are being cleaned and disinfected accordingly, adding that disinfection will also be carried out in the entire building.

Eco World Development Group Bhd (EcoWorld) and its 27%-owned associate Eco World International Bhd (EWI) have set a combined sales target of RM5 billion for the financial year ending Oct 31, 2021 (FY21).

For financial results, EcoWorld said its net profit fell 18.41% to RM66.45 million for the fourth quarter ended Oct 31, 2020 (4QFY20) from RM81.46 million a year ago. Revenue declined 30% to RM635.47 million from RM906.54 million. The group attributed the lower profit for FY20 mainly to closures of sales galleries during the Movement Control Order (MCO) period, the temporary cessation of site activities from mid-March to mid-June, and the cumulative impact of inventories written down in 3QFY20 and 4QFY20.

EcoWorld declared a maiden interim dividend of two sen per share.

Meanwhile, EWI saw its net profit plunge 85.25% to RM17.44 million for 4QFY20 from a year ago, even though revenue jumped to RM57.38 million from RM254,000. The weaker performance in FY20, it said, was due to a lower share of results of joint ventures (JVs) and the commencement of accounting impairment of goodwill.

VS Industry Bhd’s net profit climbed 38.7% to RM66.68 million for the first quarter ended Oct 31, 2020 (1QFY21) from RM48.07 million a year ago, mainly due to a favourable product sales mix for its Malaysian operations. This was despite a 4.6% drop in revenue to RM987.1 million from RM1.03 billion, due to lower contribution from its China business.

On a quarter-on-quarter (q-o-q) basis, its net profit rose 23.2% from RM54.12 million for 4QFY20, while revenue grew 11.84% from RM882.61 million. The group declared a first interim dividend of 1.2 sen per share, which will be paid on March 5, 2021.

Packaging materials manufacturer Scientex Bhd’s net profit grew 14.3% year-on-year to RM92.53 million in the first quarter ended Oct 31, 2020 (1QFY21), from RM80.96 million in the same quarter last year, as its packaging division reported higher earnings.

The improved bottom line came despite an 8.6% decline in revenue to RM802.26 million from RM877.37 million. The group did not declare any dividend for the quarter.

LKL International Bhd is buying two pieces of freehold industrial land in Seri Kembangan for RM12 million or RM556 per sq ft. The lands, measuring a combined built-up area of 21,600 sq ft or 0.49 acres, also comes with two units of three-storey semi-detached factory erected on top.

The group’s wholly-owned subsidiary LKL Advance Metaltech Sdn Bhd inked the sale and purchase agreement today for the acquisition of the land from Positive Frontier Sdn Bhd, a private limited company engaged in property investment and development. It is wholly-owned by SE Commerce Sdn Bhd.

LKL said the acquisition will be funded via the proceeds it raised from the private placement announced on July 17, which raised a total of RM45.45 million.

Perak Corp Bhd has announced a debt restructuring with its creditors involving cash settlements worth over RM220 million, issuance of its shares worth over RM30 million, proposing a debt waiver amounting to RM544.55 million, and future settlements by the group's turnaround plan in the ordinary course of business.

The company is selling off four pieces of land to the Social Security Organization (Socso) for a total of RM78.68 million to settle part of its debts. It added that the debt settlement is part of efforts towards the formalisation of the group’s regularisation plan to uplift itself from its Practice Note 17 (PN17) status.  

A sum of RM70.81 million of the sale proceeds will be used for repayment of bank borrowings, and the other RM7.87 million will go for working capital requirements. The "scheme creditors" involved in Perak Corp's debt settlement scheme include Affin Islamic Bank Bhd, CIMB Bank Bhd, Affin Hwang Investment Bank Bhd, Bank Pembangunan Malaysia Bhd and Malaysia Debt Ventures Bhd.  

Separately, it has been slapped with an unusual market activity (UMA) query by the stock exchange over the sharp rise in its share price and volume today. The group is engaged in property and investment holding, real property development and provision of management services.

Electricity demand dips, renewable energy gains momentum

The fallout from Covid-19 has a significant impact on electricity consumption trends in Malaysia as movement restrictions have led to sudden change in socioeconomic habits.

At the peak of the pandemic, only essential industries were allowed to operate, some at only 50% capacity, while the rest of the industries were either shutdown or adapted to remote working practice.

It had resulted in a sudden decline in energy demand, especially in commercial and industrial usage.

Despite a surge in household consumption of electricity, it was not enough to fill the drop in commercial and industrial usage as the economy was only operating at 45% of its capacity during the seven-week movement control order (MCO) period.

Tenaga Nasional Bhd (TNB) had said during the MCO, electricity usage in the industrial and commercial sectors dropped between 25% and 50% as businesses and industries halted activities, while usage in the residential sector surged between 20% and 50% as families stayed indoors and employees worked from home.

It expected the electricity consumption to drop between 6% and 10% year-on-year in 2020, mainly due to slowing activities in the commercial sector.

The forecast is within the range of 5%-10% of global electricity demand fall predicted by the International Energy Agency (IEA).

This has also impacted the demand for coal, oil and gas.

According to the IEA, renewable was the only source that posted a growth in demand, driven by larger installed capacity and priority dispatch.

“Electricity demand is unlikely to return to normal levels even after the development of a coronavirus vaccine, ” according to a report by scientists from Columbia University.

TNB feels the pinch

Its nine months net profit declined to RM2.38bil from RM3.88bil from the same period last year. Revenue for the cumulative months ended Sept 30,2020 also slipped to RM33.65bil from RM38.76bil previously.

It serves 9.2 million accounts, of which 7.4 million accounts are residential while the remaining are the commercial sector.

In a filing with Bursa Malaysia, TNB said the increase in demand from the residential segment was unable to fill the decline in commercial and industrial usage as both contributed close to 80% the sales in Peninsular Malaysia.

It also reported that the Covid-19 pandemic is impacting the progress of the group’s initiatives to reduce its current exposure; including the restructuring and turnaround exercise and sale of investment, particularly in its 30% owned companies in GAMA (Turkey) and GMR (India).

However, the group’s UK assets are insulated by the long-term subsidy scheme.

Going forward, it will leverage its existing UK assets and market experience to build up a sizeable renewable energy portfolio by 2021 through acquisitions of both operating assets and development of green field projects.

Incentives

As lockdown measures and its subsequent impact led to unemployment and job losses, the government introduced various incentives under economic stimulus packages such as electricity discount to 7.5 million residential users and other affected sectors and flexi payment plan.

On the regular six-month Imbalance Cost Pass-Through surcharge, TNB confirmed the adjustment was to zero from two sen/kWh for both domestic and non-domestic electricity users, from July 1 to Dec 31,2020.

This is due to a reduction in actual fuel cost for the period of January-June 2020 compared with the previous six-month period (July-December 2019).

Shifting to renewable energy

The government has introduced several initiatives such as the enhanced net energy metering programme (NEM) and solar leasing to boost renewable energy (RE) uptake.

Banks have offered solar power financial packages with lower interest and it will help Malaysia achieve the 20% RE efficiency target by 2025.

Participation from big companies such as Taliworks Corp Bhd, Malakoff Corp Bhd and Fraser & Neave Holdings Bhd, and International Paper Sdn Bhd will help Malaysia achieve the target faster.

Other companies that seem to support the RE industry were FGV Holdings Bhd and Malakoff Corp Bhd’s unit, Southern Biogas Sdn Bhd, each installing a biogas power plant in Pahang and Johor, respectively.

Mah Sing Plastics Industries Sdn Bhd and AT Glove Engineering Sdn Bhd, each installing solar photovoltaic projects in smart factories in Klang and a manufacturing factory in Perak, respectively.

Meanwhile, the government decision to provide more incentives under Budget 2021 will boost the RE industry growth.

Among the initiatives are the first Sustainability Bond for environmental and social initiatives and RM2bil under the green technology financing scheme.

The Sustainable Energy Development Authority has estimated that some 4.1 million buildings in Malaysia might still accommodate solar panels, and collectively generate about 24-gigawatt peak of electricity.

According to the Institute for Democracy and Economic Affairs, RE capacity is expected to reach 12 gigawatt to 13 gigawatt grid installed capacity by 2030. — Bernama

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