Currency valuation in the environment of tightening monetary policy: In the post-pandemic era, most economies start to normalise or tighten monetary policy rates amid improving domestic economic activities and rising inflationary pressure.

A case for ringgit appreciation

Tasco Bhd
(March 25, 72 sen)
Maintain neutral with a lower target price of 73 sen: Tasco Bhd’s international business segment makes up about 30% of its total revenue. About 65% of its international business segment revenue, is in turn contributed by the air freight ...

Tasco’s air freight forwarding business seen to face headwinds

WCT Holdings Bhd 
(March 20, 31.5 sen)
Maintain buy with an unchanged target price of 64 sen: Last Thursday, based on a Bursa announcement dated March 19, 2020, the group has accepted a letter of award (LoA) from Jendela Mayang Sdn Bhd. Under the LoA, WCT Holdi...

WCT’s new RM1.2b job seen to improve investor sentiments

AirAsia Group Bhd
(March 17, 62.5 sen)
Maintain neutral with a lower target price of 63 sen: AirAsia Indonesia and AirAsia India were the darlings of AirAsia Group Bhd. However, rising Covid-19 cases outside China and wider travel bans by countries such as India wil...

Pressure on AirAsia could be cushioned by domestic travel

WCT Holdings Bhd
(March 16, 38.5 sen)
Maintain buy with a lower target price (TP) of 64 sen: Based on Bursa Malaysia’s announcement dated March 13, 2020, WCT Holdings Bhd’s Middle East regional office in Doha, Qatar had received a final award pertaining to an arbitr...

Additional provision for arbitration case seen to impact WCT FY19 profit

YTL Power International Bhd
(March 13, 59.5 sen)
Upgrade to buy with an unchanged target price of 70 sen: YTL Power International Bhd (YTLP) is acquiring Hyflux Ltd’s Tuaspring 396 megawatt (mw) combined cycle gas turbine (CCGT) power plant, which has been placed un...

YTL Power acquisition cost of power plant in S’pore seen cheap

Malaysia Airports Holdings Bhd
(March 12, RM5.89)
Maintain buy with a revised target price of RM7.65: February 2020 passenger traffic for Malaysia Airports Holdings Bhd (MAHB) airports — excluding the Istanbul Sabiha Gocken Airport (ISGA) — fell 23.4% year-on-year (...

MAHB’s passenger numbers still seen to hit 100.1 million mark in 2020

MISC Bhd
(March 10, RM7.02)
Upgrade to trading buy with an unchanged target price of RM8.11: Recall that the US Energy Information Administration cut its global oil demand growth forecast for 2020 by 310,000 barrels per day. Nevertheless, the latest chain of events ...

MISC could benefit as oversupply of oil bullish for its freight rates

Insurance sector
Downgrade to neutral: Concluding the fourth quarter of financial year 2019 (4QFY19) earnings season of insurance companies under our coverage, we noticed that its net earned contributions (NEC) and net earned premiums (NEP) as well as earnings were experie...

Insurance sector seen entering soft market cycle

Banking sector
Maintain positive: Bank Negara Malaysia announced another cut to its overnight policy rate (OPR) of 25 basis points on Tuesday, bringing the OPR to 2.50%. While we had expected another OPR cut to follow the reduction in January, we expected it would have bee...

OPR cut not seen as imminent recession signal

KUALA LUMPUR (April 16): The Malaysian Investment Development Authority (Mida) plays an instrumental investment facilitator role in removing obstacles for prospective investors, said Investment, Trade and Industry (Miti) Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

Zafrul: Mida a vital instrument to remove obstacles for prospective investors

NEW YORK/BENGALURU (April 16): The Dow Jones Industrial Average outshone its peers on Tuesday, following upbeat results from health insurer UnitedHealth, while higher Treasury yields and conflict in the Middle East kept investors on edge.

Dow up on UnitedHealth boost; higher bond yields, Mideast tensions cap gains

KUALA LUMPUR (April 16): Comfort Gloves Bhd said two subsidiaries of the group have commenced legal action over an additional tax demand totalling RM99.3 million by the Inland Revenue Board (IRB).

Comfort Gloves’ units go to court over RM99 mil additional tax demand

Tesla Inc shares extended their decline for 2024, pushing the electric-vehicle (EV) maker’s market valuation below US$500 billion (RM2.40 trillion), as a round of job cuts this week further soured sentiment around the company.

Tesla’s value declines below US$500b as risks pile up

Federal Reserve (Fed) vice chair Philip Jefferson said he expects inflation to continue to moderate, with interest rates at their current level, but persistent price pressures would warrant holding borrowing costs high for longer.

Fed’s vice chair sees steady rate helping to push down inflation

The International Monetary Fund (IMF) inched up its expectations for global economic growth this year, citing strength in the US and some emerging markets, while warning the outlook remains cautious amid persistent inflation and geopolitical risks.

IMF lifts growth forecast for global economy but warns of risks

US industrial production rose for a second month in March, boosted by a larger-than-expected increase in factory output, as manufacturing showed further signs of stabilising.

US industrial production rises again on boost from manufacturing

NEW YORK/BENGALURU (April 16): Johnson & Johnson's (J&J) first quarter revenue missed Wall Street estimates on Tuesday, with sales of its blockbuster psoriasis drug Stelara coming in lower than expected, as the company prepares for its loss of exclusivity in the US.

J&J's first-quarter revenue misses as Stelara sales fall short

Policymakers around the world are struggling to confront a surging greenback and lofty US interest rates, according to Mohamed El-Erian. 

“Authorities are a little bit frozen around the world as to how do you react to a generalised dollar strengthening?” El-Erian, the president of Queens’ College, Cambridge and a Bloomberg Opinion columnist, told Bloomberg Television on Tuesday. “How do you react to a generalised increase in interest rates in the US?”

El-Erian says world ‘frozen’ by strong dollar, high US rates

The Kelana Jaya Line Light Rail Transit (LRT) service is operating with a limited number of trains, due to a disruption to the power supply system which was struck by lightning at 3.30pm on Tuesday.

Power supply disruption affects Kelana Jaya Line LRT service

Datuk Abdul Rahman Ahmad will return to Permodalan Nasional Bhd (PNB) as its president and group chief executive effective July 1, 2024, the government-linked investment company said.

CIMB’s Abdul Rahman Ahmad returns to PNB as president, group chief executive

Analysts are positive on Malaysia’s pilot green power exports to Singapore using existing infrastructure in both countries, following establishment of the platform enabling cross-border trading of green electricity, the Energy Exchange Malaysia (Enegem).

Analysts positive on pilot green power exports to Singapore; name Tenaga, YTLP as top picks

CIMB Group Holdings Bhd, Malaysia’s second-biggest banking group by assets, said on Tuesday its chief executive Datuk Abdul Rahman Ahmad will step down on June 30.

CIMB says CEO Abdul Rahman Ahmad stepping down on June 30

The Ministry of Transport clarified on Tuesday that the higher contract value of RM190.01 million awarded to HeiTech Padu Bhd for Road Transport Department (JPJ) services was only due to a longer extended contract duration.

Loke: Higher contract value awarded to HeiTech Padu due to longer extended duration

Outsourced semiconductor assembly and testing (OSAT) player Globetronics Technology Bhd is in the final stages of discussion with two prospective clients interested in leveraging advanced packaging technology.

Globetronics in final talks with two potential customers for advanced packaging

Transport Minister Anthony Loke Siew Fook said his ministry has no objection to MMC Corp Bhd divesting a stake in MMC Port Holdings Sdn Bhd, including to foreign entities, as long as it does not contravene the government's policy that requires 51% ownership of major national assets to remain with local companies.

Loke says MMC Port free to sell stake to foreign firms, but govt has to be notified of shareholding changes

Carlo Rino Group Bhd has filed for an initial public offering (IPO) that would raise more funds for the apparel company as part of its listing transfer to the ACE Market from the LEAP Market.

Carlo Rino files draft prospectus for listing transfer to ACE Market

Former prime minister Tan Sri Muhyiddin Yassin has requested for a bench of five Court of Appeal (COA) judges to hear his review against the court’s own decision to reinstate abuse of power charges involving RM232.5 million against him.

Muhyiddin seeks five-judge bench to hear criminal charges review

European Commission President Ursula von der Leyen is unleashing a barrage of trade restrictions against China as she seeks to follow through on a pledge to make the EU a more relevant political player on the global stage.

EU goes on China trade offensive after getting ‘played’ 

KTI Landmark Bhd (KTI) has signed an underwriting agreement with M&amp;A Securities Sdn Bhd for its listing on the ACE Market of Bursa Malaysia Securities Bhd.

In a statement on Tuesday, the Sabah-based integrated property developer said the initial public offering (IPO) comprises a public issue of 160 million new shares and an offer for sale of 45 million existing shares, representing 20% and 5.6% of the enlarged share capital of KTI respectively.

KTI Landmark inks underwriting deal with M&A Securities en route to ACE Market listing

Bursa Malaysia ended the morning session lower on Tuesday, in tandem with the weaker regional performance due to a broad sell-off on Wall Street overnight, said an analyst. &nbsp;

Bursa ends morning session lower along with regional peers

China’s rapidly expanding petrochemicals industry is making life increasingly difficult for producers in Asia’s next-biggest exporter of the building blocks for making plastics. 
&nbsp; 
Asia’s largest economy used to be the major market for South Korean companies like LG Chem Ltd and Lotte Chemical Corp. But the exporters of the chemicals used to make everything from nylon to disposable bottles and car interiors are now being forced to downsize their operations after a frenzy of petchem-plant building in China over the last few years created a supply glut. &nbsp;

China’s growing plastics dominance is squeezing out Asian rivals

EP Manufacturing Bhd's (EPMB) shares climbed on Tuesday and marked their best day in 10 months after the Shah-Alam based auto parts maker signed an assembly deal with a Chinese carmaker.

EP Manufacturing shares chart best day in 10 months after assembly deal

Gold is set to reach US$3,000 (RM14,381.71) an ounce over the next six to 18 months on increasing investor inflows amid expectations that the Federal Reserve will eventually cut interest rates, Citigroup Inc said, adding to a roll call of Wall Street banks that have raised forecasts.

Gold seen hitting US$3,000 at Citi as investor inflows juice rally

The Ministry of Investment, Trade and Industry (Miti) will draw up a comprehensive semiconductor strategic plan to ensure that Malaysia continues to be the chosen investment destination for this strategic industry, said Prime Minister Datuk Seri Anwar Ibrahim.

Anwar: Miti to draw up comprehensive semiconductor strategic plan

Workers in Singapore can now ask for four-day work weeks, more work-from-home days and staggered work timings starting from Dec 1, underscoring the global trend of governments and companies relaxing office arrangements in order to retain talent.

Singapore orders all employers to consider employees’ flexi-time requests

ISKANDAR PUTERI (April 16): The Johor government wants to develop a multi-tiered Automated Rapid Transit (ART) system in Johor Bahru to address traffic congestion in the city.

MB: Multi-tiered Automated Rapid Transit system planned to overcome Johor Bahru congestion

Practice Note 17 (PN17) company Serba Dinamik Holdings Bhd said it had been granted an extension of time until May 15 by Bursa Malaysia to submit its regularisation plan.

Bursa grants Serba Dinamik second extension of time until May 15 to submit regularisation plan

Bursa Malaysia ended lower for the second consecutive day on Tuesday, tracking the weak global sentiment due to the Middle East conflict, said an analyst. &nbsp;

Bursa closes lower, tracking weak global sentiment

HSBC Holdings plc has started a new round of job cuts at its Asia investment bank amid a slump in dealmaking across the region, according to people familiar with the matter.

The London-based lender cut around a dozen bankers across its investment banking division in Asia on Tuesday, one of the people said, asking not to be identified discussing a private matter.&nbsp;

MIDF Research

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MIDF Research

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