Selling pressure on the glove stocks has yet to dry up, wiping off market capitalisation of RM27.65 billion from the big four manufacturers, namely Top Glove Corp Bhd, Hartalega Holdings Bhd, Supermax Corp Bhd and Kossan Rubber Industries Bhd.
KUALA LUMPUR (Feb 26): Share prices of semiconductor-related companies on Bursa Malaysia are hitting record highs; so are their latest quarterly earnings.
The few companies that posted record high quarterly net profits are UWC Bhd, Vitrox Corp Bhd, Inari Amertron Bhd and Greatech Technology Bhd.
Fund managers and investment analysts told The Edge that the astronomical increases in earnings among semiconductor companies are expected to continue in the current year, particularly because of the chip shortage that has been accentuated by the further computerisation of consumer electronics, the implementation of 5G, and greater usage of technology in the automotive industry.
TA Investment Management Chief Information Officer Choo Swee Kee expects earnings for semiconductor companies to be strong on the recovery of consumer demand for electronic and electrical products post-pandemic worldwide.
At 9.05am, the FBM KLCI rose 8.83 points to 1,566.38.
The early gainers included Malaysian Pacific Industries Bhd, D&O Green Technologies Bhd, Uchi Technology Bhd, Hengyuan Refining Company Bhd, Inari Amertron Bhd, Allianz Malaysia Bhd,
Frontken Corp Bhd, Genetec Technology Bhd and DSB-Hicom Bhd.
Bloomberg said Asian stocks and U.S. futures rose Thursday after a rebound in the S&P 500 on encouraging vaccine news and soothing comments on inflation from Federal Reserve Chairman Jerome Powell.
Treasury yields were steady, it said.
JF Apex Research said US markets surged overnight with the Dow hitting a record high as bond yields came off their highs after the Federal Reserve chairman downplayed the threat of inflation.
The main index at Bursa Malaysia rose 1.04% at the midday break today, tracking the jump at regional markets, as Petroliam Nasional Bhd (Petronas)-linked stocks led the gains.
KUALA LUMPUR (Feb 24): Inari Amertron Bhd posted its best-ever quarterly net profit of RM90.1 million in the second quarter ended Dec 31, 2020 (2QFY21), about 2.4 times the RM37.49 million it made last year, driven by stronger sales volume generated by its radio frequency (RF) business.
Quarterly revenue grew by 42% to RM376.83 million from RM265.44 million previously, its stock exchange filing today showed. Earnings per share rose to 2.74 sen from 1.18 sen.
The group declared a second interim dividend of 2.5 sen per share in respect of the financial year ending June 30, 2021 (FY21), payable on April 8.
On a quarter-on-quarter basis, its net profit was up 28.6% from RM70.07 million, while revenue grew 8.4% from RM347.62 million in 1QFY21.
KUALA LUMPUR (Feb 24): Based on corporate announcements and news flow today, companies in focus tomorrow (Feb 25) may include: Telekom Malaysia Bhd, VSTECS Bhd, Vitrox Corp Bhd, D&O Green Technologies Bhd, Rubberex Corp Bhd, Allianz Malaysia Bhd, Press Metal Aluminium Holdings Bhd, Inari Amertron Bhd, Aeon Co (M) Bhd, Genting Plantations Bhd, Parkson Holdings Bhd, DRB-Hicom Bhd, Hap Seng Plantations Holdings Bhd, Globetronics Technology Bhd, Dayang Enterprise Holdings Bhd, Datasonic Group Bhd, UOA Development Bhd, Prestar Resources Bhd, Tek Seng Holdings Bhd, Majuperak Holdings Bhd, AirAsia Group Bhd, Destini Bhd and LKL International Bhd.
Telekom Malaysia Bhd (TM) returned to the black in the fourth quarter ended Dec 31, 2020 (4QFY20) registering a net profit of RM259.44 million from a net loss of RM51.09 million recorded a year earlier due to lower operating costs and net other gains, the telco said. The improvement in its bottom line was despite the fact that TM saw its revenue fall slightly by 1.1% to RM3 billion from RM3.03 billion a year earlier, underpinned by lower revenue in its voice, data and non-telecommunication services. Its earnings per share (EPS) jumped to 6.87 sen in the quarter from 1.37 sen a year earlier. TM also declared a final interim single-tier cash dividend of 7.5 sen, to be paid on March 31.
This week will see Malaysia joining Hong Kong and Singapore in releasing its inflation numbers for January. Malaysia is scheduled to announce the Consumer Price Index (CPI) data on Wednesday. The CPI fell 1.4% year on year in December 2020.
According to ING senior economist for Asia Prakash Sakpal, inflation in Hong Kong, Malaysia and Singapore likely remained in negative territory. “Of note here would be data from Malaysia where tighter Covid-19 movement restrictions (in January) possibly intensified the downward price trend, supporting our call of a 25-basis-point Bank Negara Malaysia policy rate cut in March,” he says in a Feb 18 report.
Among catalysts that will drive the sector for this year include 5G network deployment with the high adoption rates and stronger demand and supply for 5G devices, as well as growing sub-sectors such as automotive/electric vehicles, Internet of Things, artificial intelligence, medical/life science and the Industrial Revolution 4.0.
PETALING JAYA: The technology sector is expected to see a strong earnings growth for the next two years that will support its lofty valuation, according to Maybank IB Research.
In a report yesterday, the research house pointed out that the ‘rich valuations’ of the sector are backed by merits.
The Bursa Malaysia Technology Index has risen almost 27% in less than two months, outperforming the benchmark index FBM KLCI, which had declined 2%.
KUALA LUMPUR (Feb 17): The main index of Bursa Malaysia pared some of its loss before the midday break today, but remained below the 1,600-point level in line with cautious regional markets.
At 12.30pm, the FBM KLCI was down 8.10 points at 1,598.04. The index earlier dropped to a low of 1,596.45.
Broader market sentiment remained cautious with 416 losers and 367 gainers, while 712 counters traded unchanged. Trading volume was 5.99 billion shares valued at RM2.79 billion.
The top losers included Malaysian Pacific Industries Bhd, Pentamaster Corp Bhd, AEON Credit Service (M) Bhd, Kuala Lumpur Kepong Bhd (KLK), Mega First Corp Bhd, Telekom Malaysia Bhd (TM), Inari Amertron Bhd, Unisem (M) Bhd and Axiata Group Bhd.
BURSA Malaysia-listed companies have realised how important it is to be cash rich when faced with an unexpected and severe situation like the Covid-19 pandemic.
This is especially given the tough economic conditions the business community has had to weather in the past year, with lockdowns enforced in Malaysia and its major trading partners to contain the spread of the virus, bringing activities practically to a standstill.
Many companies built up their cash positions in 2020 in anticipation of the severe economic downturn due to Covid-19, notes private investor and former investment banker Ian Yoong.
“Larger listed companies issued bonds and other fixed-income securities. It is a natural response to be conservative in the face of an impending severe economic downturn,” he says.