Financenews
99 Speed Mart reports higher 2Q24 revenue
Affin Bank and DBS Bank Enhance Collaboration to Drive Stock Market Opportunities
Affin Bank and DBS Bank have joined forces in an exciting new strategic partnership
Berjaya Food falls into the red, posts RM91mil net loss in FY2024
Bursa Malaysia ends midday in negative territory in line with reginal peers
Bursa opens at fresh high on buying in financial services stocks
Bursa opens firmer as blue chips remain in demand
CGS International says downside risk to ringgit remain, targets 4.4 by year-end, 4.2 by end-2025
Gold prices rise on September US rate-cut expectations
Indonesia’s protest victory sparks debate over new era of civic activism, or a rare success story
Thu. Dec 19th, 2024
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Sime Darby Property launches Elmina Lakeside Mall with 98% retail space leased

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KUALA LUMPUR: Sime Darby Property Bhd is set to redefine the shopping experience in northern Shah Alam, with over 98% of retail spaces already secured as it officially marks the soft opening of Elmina Lakeside Mall (ELM).

ELM is Sime Darby Property’s second wholly-owned mall, following KL East Mall.

Located in the heart of Elmina City Centre and covering more than 17.18 acres, ELM embodies a distinctive biophilic design that showcases Sime Darby Property’s dedication to sustainable development. The mall aims to enhance the quality of life for the City of Elmina’s expanding population of 67,000 and the surrounding areas.

“ELM represents a new chapter in retail experiences. Bringing together a synthesis of nature-inspired elements with modern amenities, we are shaping a vibrant lifestyle hub for residents and visitors alike. This mall embodies our vision of creating sustainable communities that cater to the evolving needs of modern, eco-conscious consumers,” Sime Darby Property chief operating officer of township development Appollo Leong, said in a statement.

In conjunction with the launch, children’s activities, exclusive promotions, redemption offers, and live performances will be available for visitors until Sept 16, 2024. This will be followed by a series of thoughtfully curated events and programmes throughout the year focusing on community engagement, diversity, and sustainability.

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99 Speed Mart reports higher 2Q24 revenue

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PETALING JAYA: Main Market-bound 99 Speed Mart Retail Holdings Bhd reported a revenue of RM2.4bil for the second quarter ended June 31, 2024, reflecting a RM183.3mil or 8.2% year-on-year (y-o-y) increase, mainly attributed to higher sales led by the contribution from new outlets and positive impact from the bulk sales e-commerce platform.

In a statement, the country’s largest home-grown mini market chain retailer said total sales transactions also rose by 12.9% to 113.8 million transactions y-o-y, partially offset by a lower average basket size, which reduced by 4.2% to RM21.30.

Gross profit (GP) grew by RM44.5mil or 23.5% to RM234mil, in line with the increase in revenue while GP margin improved by 1.2% primarily due to higher promotional discounts and prompt payment discounts for the goods purchased.

Additionally, net profit rose by RM50mil or 66.3% to RM125.5mil mainly due to the reasons stated above and the upward adjustment of the distribution centre fee rates charged to the suppliers for the handling of products starting from the first quarter of the financial year ending Dec 31, 2024.

For the six-months period ended June 30, 2024, 99 Speed Mart’s revenue rose by 8.6% y-o-y, registering a cumulative revenue of RM4.8bil while net profit grew by 41.6% to RM258.7mil.

99 Speed Mart founder and chief executive officer Lee Thiam Wah said the group’s strong financial performance, driven by strategic outlet expansion and successful launch of our e-commerce bulk sales platform, underscores the company’s commitment to provide greater convenience and value to customers.

“Looking ahead, our upcoming listing on the Main Market of Bursa Securities represents a pivotal milestone for the Company as we continue to drive sustainable growth and deliver long-term value for our stakeholders.”

99 Speed Mart plans to list on the Main Market of Bursa Malaysia Securities on Sept 9, 2024.

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Large block of Ocean Vantage shares traded off-market

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KUALA LUMPUR: A total of 97.93 million shares of Ocean Vantage Holdings Bhd were transacted in an off-market deal on Monday at 20.4 sen per share.

Stock market data showed that this block of shares represents a 23.32% stake in Ocean Vantage. The transacted price was 2.9 sen, or 16.57% higher than the closing price of 17.5 sen.

Ocean Vantage is primarily involved in providing support services for the oil and gas industry, supporting both upstream and downstream activities.

For the first six months ending June 30, Ocean Vantage reported a net loss of RM2.11mil, or a loss per share of 0.50 sen, on revenue of RM67.4mil.

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Puncak Niaga disposes of entire stake in Zuriat Watan for RM83.6mil

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PETALING JAYA: Puncak Niaga Holdings Bhd’s wholly-owned subsidiary, TRIplc Bhd, has entered into a share sale agreement on Aug 21, 2024 with Jinze Sdn Bhd for the disposal of 202,500 ordinary shares representing 4.5% equity interest in Zuriat Watan Sdn Bhd (ZWSB) for a disposal price of RM3.58mil.

In a filing to Bursa Malaysia, Puncak Niaga said TRIplc had also entered into a separate share sale agreement on Aug 27, 2024 with Leeway Holdings Sdn Bhd, DB Enneadrakon Group (M) Sdn Bhd and Sheng Dar Holding Sdn Bhd.

The agreement was for the disposal of 4.3 million ordinary shares representing 95.5% equity interest in ZWSB for a disposal price of RM80mil, totaling both proposals at RM83.62mil.

The first proposal is expected to be completed by the third quarter of 2024 while the second proposal in the fourth quarter of 2024.

Puncak Niaga said the proposed disposals are part of its strategy to monetise its non-core assets, to ease the cash flow of the group.

The funds will be used for financial obligations, general working capital and for expenses related to the disposals.

“The proposed disposals will not have any effect on the issued share capital and the substantial shareholders’ shareholding as it will be fully satisfied in cash and not involve the issuance of new shares.

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Gold prices rise on September US rate-cut expectations

Admin
LONDON: Gold prices firmed on Monday, aided by a weaker dollar and lower Treasury yields after dovish remarks from U.S. Federal Reserve Chair Jerome Powell cemented expectations for a September rate cut.

Spot gold rose 0.4 per cent to US$2,520.39 per ounce by 0756 GMT, after gaining more than 1 per cent in the previous session. U.S. gold futures also gained 0.4 per cent to US$2,556.00.

Powell on Friday endorsed an imminent start to rate cuts, saying further cooling in the job market would be unwelcome.

The dollar hovered near its lowest level in 13 months, making gold cheaper for other currency holders, while benchmark 10-year Treasury yields also eased.

“Gold will remain in vogue with investors so long as the dollar remains on the back foot ahead of anticipated rate cuts. If U.S. yields remain suppressed, gold may fancy taking a run towards US$2,550 this week if resistance around US$2,530 can be cleared first,” said Tim Waterer, chief market analyst, KCM Trade.

Traders have fully priced in a cut for next month, with a 62 per cent chance of a 25 basis point reduction and a 38 per cent chance of a bigger 50 bp reduction, according to the CME FedWatch tool. A low interest rate environment tends to boost non-yielding bullion’s appeal.

Adding to gold’s upward momentum is the uncertainty caused by the ongoing Middle East tensions, said Kelvin Wong, OANDA’s senior market analyst for Asia Pacific.

Gaza ceasefire talks took place in Cairo on Sunday but neither Hamas nor Israel agreed to several compromises presented by mediators, two Egyptian security sources said.

Elsewhere, India’s gold demand during the upcoming festive season is likely to remain robust as the substantial reduction in import duty has made prices appealing, industry officials said.

Spot silver rose 0.9 per cent to US$30.08, platinum gained 0.2 per cent to US$964.46 and palladium eased 0.2 per cent to US$961.25.

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Malaysia back on international investors’ radar with US rate-cut in view

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KUALA LUMPUR: Malaysia’s economic potential has often been underestimated by international research firms, despite its good appeal to foreign investors, according to an economist.

Since the past few weeks, however, the country had gotten rave reviews from the likes of US investment banks JP Morgan and Golman Sachs, Singapore’s UOB and Fitch Ratings.

The latest notable economic upgrade came from Nomura Group, Japan’s largest investment bank and brokerage, on Monday.

Nomura, through its research unit, upgraded Malaysia to an “Overweight” rating given its strong fundamentals and robust second-quarter gross domestic product (GDP) growth.

Nomura’s economics team expects above-consensus full-year 2024 GDP growth of 5.2 per cent.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said such review is long overdue and Malaysia as a country has a lot to offer to the foreign investors.

He added that the undervaluation of ringgit and equities markets suggests there is a clear motivation from the foreign investors to go long on Malaysian financial assets.

“The political stability in the country has been established and this will pave the way for the implementation of economic reforms which essentially will raise the long term potential gross domestic product (GDP) growth.

“By extension, this will improve productivity which will translate into better earnings prospects in the future.

“So Malaysia has all what it takes to attract foreign funds given that it has been lacklustre since 2018 and the present administrations have demonstrated their resolve for economic reforms,” he told Business Times.

Afzanizam also noted that potential rate cuts in the US would certainly enhance the appeal of Malaysian assets, given the possible narrowing of the interest rate differential between the US and Malaysia.

Nevertheless, he said the slowdown in major economies such as the US and China, along with concerns over geopolitical risks that could disrupt global trade, remains a key risk.

“Such risks can be systemic. But at the end of the day, foreign investors will appraise the country individually in order to spot the market opportunities,” he said.

Meanwhile, economist Dr Geoffrey Williams believes that the country’s GDP growth for the second half of 2024 (2H24) will range from four per cent to 4.5 per cent.

“Inflation is expected to be around two per cent, with no change anticipated in the overnight policy rate (OPR) for this year. The fair value for the ringgit is estimated to be between RM4.20 and RM4.30,” he said.
Williams also noted that a rate cut by the Federal Reserve is likely, following similar actions by the Bank of England and the European Central Bank.

He said this could narrow the interest rate differential and benefit the ringgit.

“However, there is also uncertainty about the US election in November and the likely outcome is not very clear. This may worry international markets,” he added.

Last month, JP Morgan raised Malaysia’s rating from “Underweight” to “Neutral” for the first time in nearly six years, crediting the nation’s policy reforms, data centre investments and infrastructure development.

Its head of Asia-Pacific Rajiv Batra said Malaysia’s rapid pace of progress was impressive with a 4.2 per cent GDP growth in the first quarter of 2024 (1Q24).

He added that earnings growth, which was nearly 10-11 per cent, was an upside surprise and that the country deserved credit for this.

Meanwhile, UOB increased its 2024 GDP growth forecast to 5.4 per cent, up from the previous projection of 4.6 per cent.

The firm highlighted that several factors contribute to Malaysia’s optimistic economic outlook. This included the rising global technology cycle boosting electronics exports, a rebound in tourism enhancing the service sector and consumer spending, and ongoing targeted government cash aids.

Goldman Sachs also recently upgraded Malaysia’s stock market to an equal weight rating due to the defensive nature of the local market in response to external shocks.

According to its analysis, investor sentiment towards Malaysia has improved since Prime Minister Datuk Seri Anwar Ibrahim began his second year in office, bringing political stability.

It noted that the strengthening Malaysian economy and a more robust currency have also boosted confidence in local assets.

Last week, Fitch’s unit BMI Country Risk and Industry Research revised up its 2024 growth forecast for Malaysia to 4.7 per cent from 4.4 per cent.

The firm said it expected resilient domestic demand to support Malaysia’s growth.

It also expects investment across the private sector in the country to be supported by increased capital expenditure across machinery and equipment.

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CGS International says downside risk to ringgit remain, targets 4.4 by year-end, 4.2 by end-2025

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KUALA LUMPUR: CGS International said downside risks to the ringgit remain as it may have overextended itself due to its sharp movements.

It projects the ringgit to end the year at RM4.40 against the US dollar and rise to RM4.20 at end-2025.
The firm said there is still momentum for both consumption and investments to sustain the ringgit until 2025.

“Also, Bank Negara Malaysia is perhaps the only regional central bank which could turn hawkish, in our view. That said, current ringgit strength may have been overextended due to its sharp movements, which we think poses downside risks,” it said in a note.

The firm said the recent movements in Asean currencies were due to risks of a US-led economic recession, driven in part by what was perceived as overbought fears based on very few indicators.

The US Federal Reserve (Fed) has signalled a rate cut and the market expects it to be as soon as the next meeting on September 24.

“From then on, we think dovish calls will remain where we are pricing in the possibility that the US will reach a terminal rate of 3.0 per cent by the start of 2026, implying a 150 basis point (bp) cut next year on top of 75 bp cuts this year.”

It added the expectations of a narrowing interest rate differential with the US could favour the appreciation of Asean currencies, especially given that the latter were battered by the mighty US dollar from 2022.

“We also think there are few additional factors to support more appreciation of regional currencies ahead, including Asean to exhibit a relatively sustainable balance of payments position, Trump’s rhetoric for a weaker dollar and low foreign shareholding providing strong upside if domestic growth outlook improves,” it added.

Downside for regional currencies may stem from excessive appreciation due to central banks’ preferences to build back reserves that were lost since 2022, high Asean currency correlation with Chinese Yuan which ties currency movements China’s economic outlook; and distant but possible black swan events which include the US falling into deep recession or heightened trade wars.

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Malaysia to achieve high-income status soon: OECD director

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PUTRAJAYA: Malaysia has enjoyed five decades of rapid and inclusive economic growth, bringing the country within reach of high-income status, said a chief economist.

Organisation for Economic Cooperation and Development (OECD) Economics Department director Dr Luiz de Mello said the economy has achieved an impressive average yearly growth of over six per cent since the 1960s. 

He added that Malaysia has been ahead of regional peers in terms of per capita incomes and has been able to consolidate this lead. 

Luiz said while incomes were only one-third of the World Bank’s threshold for high-income countries in 1989, they are set to surpass that threshold by 2028.

“Significant policy reforms in the 1980s allowed Malaysia to attract large inflows of foreign direct investment, turning it into a global chips and electronics manufacturer.

“Growth and productivity could be strengthened further by easing restrictive regulations and creating a more level playing field between state-owned enterprises and private firms. 

“This would bring particular benefits for services and for small and medium enterprises (SMEs),” he said in a presentation at the launch of the 2024 OECD Economic Survey of Malaysia today.

Luiz noted that with higher incomes, however, surging demands for better public services require different policies from those that were successful in the past. 

He said the public sector will have to deliver more and become more effective, which calls for improved economic governance.

He also emphasised that filling the substantial gaps in the current social protection system requires increased expenditure. 

On Malaysia’s growth, Luiz said the country’s growth is accelerating, mostly driven by expanding domestic demand. 

He added that exports are set to rebound amid stronger external demand, and inflation has fallen below historical averages but is expected to rise as energy subsidies are withdrawn.

“The economy has shown resilience in the face of shocks, including the pandemic, supply chain bottlenecks, and the economic implications of Russia’s war of aggression against Ukraine.

“Growth is projected to reach 4.9 per cent in 2024 and then 4.7 per cent in 2025. 

“Buoyant domestic demand and new opportunities in technology-intensive sectors and the expected rebound in exports will encourage private investment despite higher financing costs,” he said.

On monetary policy, Luiz said the monetary authorities started a tightening cycle in 2022 as inflation approached five per cent, driven by global energy prices and currency depreciation.

“With inflation near its two per cent long-term average, the current monetary policy stance seems adequate and provides room to accommodate a temporary increase in inflation as energy subsidies are withdrawn. 

“At the same time, monetary authorities should stand ready to raise rates to counter possible second-round effects from higher energy prices,” he noted.

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OECD’s Malaysia Economic Survey 2024 findings will be used to draft 13th Malaysia Plan – Rafizi

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PUTRAJAYA:  The findings of the Malaysia Economic Survey 2024 by the Organisation for Economic Co-operation and Development (OECD) will be used to draft the 13th Malaysia Plan (13MP), according to Economy Minister Rafizi Ramli.

He said it will also be used to formulate specific policies and programmes in sectors involving micro, small, and medium enterprises (MSMEs).

“During preliminary discussions with the OECD last year, the Economy Ministry indeed requested that the sector be studied in depth, including by comparing policies and practices in other countries, which is related to MSMEs.”

“These findings will certainly be used to draft, firstly, the 13th Malaysia Plan, which is currently being implemented, and secondly, to formulate specific policies and programmes in sectors involving MSMEs,” he told reporters after the launch of the OECD’s Malaysia Economic Survey 2024 here today.

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Indonesia’s protest victory sparks debate over new era of civic activism, or a rare success story

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JAKARTA – The success this month of protesters in Indonesia, who managed to block a controversial Bill in Parliament that was seen as a move to constrict democracy, has sparked discussions about the country entering a new era of civic activism – but not everyone is convinced.
The decision by political elites to yield to public pressure earlier in August is unlikely to set a precedent, given how such a victory following street protests is rare, and how the archipelago has had a controversial history with activists.

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