TopGlove issues RM3B Sukuk to refinance (Highlights from TheEdge 24thJan)

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Malaysia
  • TopGlove issues a perpetual sukuk (Fixed dividends with no maturity date) of RM3B as they seek to refinance its existing borrowingss and provide working capital. Perpetual bonds in Thailand will be classified as liabilities (it should be) starting 2020 as accounting standard and principles changes. This will increase the gearing ratio and debt-to-equity ratio of TopGlove. Will further discuss about this in future.
  • 18% reduction in toll will reduce RM1.1 billion in toll revenue, and that money will be spent in other sector which will result in economic growth. Date of commencement of the toll reduction is set to be February 1st.
  • Pavilion REIT declared a final dividend of 4.10 cent as its 4Q10 net property income (NPI) dipped 9.6%, as rental income fell and operating expenses rose.
  • Analyst said ringgit has remained fairly stable despite the surprise OPR cut by BNM Tuesday. Ringgit has gained 0.53% against US dollar year-to-date. FXTM Market Analyst said few factors that affect ringgit’s performance will be market risk sentiment, US dollar and Chinese yuan projection along with the global economic trajectory. To recap, IMF forecast global economy especially US and China to slowdown in 2020. Without the trade deal, the gap would be even bigger.
  • MCement (3794), formerly known as Lafarge has received approval to proceed the RM1.9B related-party transaction with YTL Cement, after an extraordinary general meeting (EGM) yesterday. The move is notable, as it was previously rejected once by the minorities. YTL Group currently owns 77% of Lafarge.
  • Petronas allocates 5% of its total capital expenditure in green energy, as the oil giant is keen to expand its footprint in the renewable energy sector, shifting its dependency on oil price.
  • Najib said he “thought” he was spending Arab donation. At this point, he might become Malaysia’s next brightest actor as the trial continues.
  • Refined sugar producer MSM bought more sugar from the world’s biggest sugar producer, India. MSM is ready to gear up its business to remain competitive and relevant in the sugar industry. As of 24th Jan 2020, MSM share price has fallen more than 80% to RM0.88, from its peak of RM5.50 in 2015.
  • KLCC Stapled Group (5235SS) revenue has fallen marginally by 0.38%, but net profit rose 33% as hotel and management services segment contribute most. Full opening of the Suria KLCC by mid 2020 is expected as a further boost for KLCC.
  • Malaysia plan to follow China’s model of rolling out 5G technologies, which seek to reduce investment required by the carriers by offering cheap airwaves policy. This can save up to RM7 billion for telco companies to embrace the upcoming 5G technology.
  • Analyst said BIMB and Alliance Bank most vulnerable to OPR cut, as their NIM will likely be squeezed as downward repricing of deposit rates take effect. Normally after OPR cut, those who has high bask rate (BR) will suffer the most. To see which company has high BR, check it HERE from BNM. Maybank, Public Bank and RHB lowers their base lending rate in response to BNM’s OPR cut. Hopefully the increment in loan will be able to offset the lower NIM for banks, or KLCI might continue to suffer.
  • Malaysia’s GDP projected to expand by 4.4% in 2020, London-based The Economist Intelligence Unit said.  Finance Minister Guan Eng previously forecasted a 4.8% GDP growth in 2020.
  • Malaysia move up 10 positions to 51st among 180 countries participated in the Corruption Perceptions Index, attributed by Pakatan Harapan’s effort to curb corruption amongst Malaysians.
  • AirAsia and Malindo cancels all flight to Wuhan to prevent the coronavirus outbreak from reaching Malaysia. MAS has also placed its measures in order to ensure no risk of viral transmission into Malaysia.

Globally
  • Singapore confirms first Coronavirus case, as Chinese residents from Wuhan was quarantined after arriving in Singapore on Monday (20th Jan). China locked down two cities to prevent the virus from further spreading. Sadly, there might be another spike of glove stocks as investors speculate a raise in glove demand in a short term.
  • Federal Reserve might cut the rate again in 2020 if the economy growth does not beat expectations.
  • Technology giant Google aim to expand its presence to healthcare sector, using its artificial intelligence. It also vowed to strictly adhere to the privacy policy. Google has spent years developing A.I. to perform various medical activities like analyzing MRI scans, identifying disease and make predictions from patient’s data. A.I. is usually better than human at analyzing and prediction as machine can process a much complex problem as long as it is provided with enough data.
  • Trump might impose another tariffs on EU car imports as he shift his focus of balancing the trade deficit from China to the European countries.
  • US Treasury Secretary asked Greta Thunberg to get an economic degree before talking about climate activity. (HAHAHA)
  • Routes out of Wuhan city are blocked from any access, as Chinese government are positive in preventing the pandemics from spreading to another city.


Taking a break until 29th January. Stay tune!

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.

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