No death outside of China from Wuhan Virus (Highlights from TheEdge 30thJan)

Malaysia

• Transport Minister Anthony Lau said not necessary to suspend all flights to China, only Malaysia-Wuhan flights are suspended. Considering how contagious the disease and how it doesn’t show any symptom even on infected people, a reckless move.
• In the SARS incident at 2003, it took two months for the market to reach its bottom, said Kenanga Analyst Koh. After the epidemic was declared over, KLCI gained 34% over the next nine months. He believes sector such as banks, consumer, electronic manufacturing services, oil and gas, gloves and utilities will have an upward trajectory after the pandemic subsided. Good news is there are NO reported death outside of China till today, thankfully.
• As Apple Inc reported higher profit, Apple supplier counter share like Inari, Globetronics rose higher as investors believe it is a positive outlook for the suppliers. Apple reported its highest quarterly revenue, contributed mainly by its iPhone sales, services and wearables.
• POS Malaysia’s share closed 3% higher, as postage fee hikes might improve the profit margin of the dying industry. POS Malaysia took a loss of -166 million last financial year (2019) and is forecasted to continue to fall, as mail volume is expected to shrink further. Postage rate revision beginning Feb 1, 2020 applied to 95% of the mail user base will double from RM0.60 to RM1.30, hoping to widen its margin to cover back its losses. International postage rates for parcel <2kg will also rise 30%.
• AirAsia’s total passenger carried up 9% for its 4Q19, but its load factor dipped to 82% due to an increase in total capacity to 16.02 million passengers. For context, load factor indicates how efficient AirAsia sell their seats and generate revenue. AAX’s passenger volume also rose by 8%, with its total seat capacity rising 4% y-o-y. AAX’s load factor was 81%, up 3% year-on-year.
• Bursa Malaysia’s Plantation Index fell to its two-months low, as crude palm oil (CPO) also took a hit due to rising concerns over China’s Wuhan outbreak. In 2019, Malaysia export to China rose 34% and accounted for 13.5% of its total palm export. As the selldown continues, analyst said it is a buying opportunity as CPO inventory is expected to fall at least for the next five months due to low production.
• InNature Bhd (The Body Shop company) to list in Main Market on February 20^th at IPO price of RM0.68, hopes to raise RM121 million. The company now has a total of 89 The Body Shop stores across Malaysia, 34 in Vietnam and one in Cambodia. The company seek to fund its expansion plan using the capital raised.
• MAHB introduces its single token journey concept which leverages on facial recognition technology during airport check-in. The concept allows passengers to check-in using single identification verification, smoothening the entire process. MAHB aim to transform KLIA into a smart airport through the application of big data analytics, following Industrial 4.0. Facial recognition scanners has been placed at check-in counters, and passengers travelling to Japan already experienced the concept.
• Maxis signed memorandum of understanding (MoU) with Microsoft Malaysia to provide innovative digital solutions for organizations in Malaysia. Maxis will leverage Microsoft Azure public cloud and Azure Stack services to enhance Maxis’s cloud services to meet the needs of business.
• Dr.Li Chunrong, CEO of Proton has brought Proton back to its glory as Proton turns into black for the first time after nine years under his leadership. He said Proton could beat Perodua by 2022, with its current momentum.
• Rail operator KTMB target to rise its non-fare revenue to 30% of total income in 2030, from a mere 3% now (Of course they don’t even have snack truck running around in the train). KTMB also plans to roll out cashless fare payments in the middle of next year and is now in discussion with some main e-wallet service providers. It is currently limited to just Komuter Link and Touch’n Go cards.

Globally

• China has complete infrastructure and protocol to handle and curb the coronavirus outbreak, as they learnt lesson from its 2003 SARS incident. Although death exceeds 130 now, China is confident that is has the ability to contain the virus outbreak soon. During 2003, China’s GDP Growth slipped to 9.1% from 11% as an aftermath of SARS economic slowdown.
• Gold ETFs hit seven-year high as global concerns on overheating market continues. Federal Reserve has signaled the interest rates are likely to remain low for some period.
• European Union (EU) add Hua Wei into 5G’s list despite ban coming from the US. On Tuesday this week, Britain granted Hua Wei a limited role in its 5G mobile network development. This move allows non-EU telco players to join in the 5G technology as long as they comply with the rules.
• Wuhan virus confirmed cases near 6,000 which is soaring to overtake official SARS infected number of 8,000. Countries are taking preventive measure to block China travelers from entering their countries.
• Boeing to cut production of its 787 Dreamliner aircraft as they forecast losses of $19Billion dollar in cost related to grounding of 737 MAX jets.
• Indonesia is confident foreign direct investment (FDI) will rise in 2020, despite falling from its 2019 target. Investors has been taking their hands off the market due to slowing global growth and growing political uncertainties from the country’s last general election.
• Credit Suisse AG is under trial for ignoring warnings from its outgoing regional CEO on the risks of lending $2Billion dollar to Mozambique. It has open up questions about its due diligence on their customers.
• US President Trump proposed on Tuesday to create a Palestinian state as part of Middle East peace plan. Trump called it a four-year freeze by Israel on new settlement activity. Trump seems to have selected its allies from the Israel-Palestinian side, where the announcement was made with Israeli Prime Minister standing at his side. The barrier should serve as a border between the capitals of the two states.
• Property stocks in Hong Kong slipped as much as 4%, the largest intraday fall since November. Macau’s gaming revenue is expected to decline at least 30%, as visiting restrictions are in place.  

Disclaimer: This is simply to note down the major incidents that I should take note in TheEdge NewsPaper. I cover as much local news as possible and do not include global news that do not interest me. Please subscribe and read the original TheEdge for more information.