The big movers and losers for the week

Local developments and announcements are also influencing the movements of key companies

by SULHI KHALID/ pic by HUSSEIN SHAHARUDDIN

BURSA Malaysia continues to be in a bear market last week as the world awaits the US Federal Reserve decision to cut its interest rate by 0.25% on July 31, the first in a decade.

Malaysia’s benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) closed 12 points lower last Friday to 1,626 level as US President Donald Trump launched another Twitter tirade over threats of a new round of tariffs on US$300 billion (RM1.23 trillion) in Chinese goods.

“Trade talks are continuing and during the talks, the US will start, on Sept 1, putting a small additional tariff of 10% on the remaining US$300 billion dollars of goods and products coming from China into our country,” he tweeted.

The Dow Jones plunged almost 300 points minutes after the tweets to closed at 26,583 level and has brought adverse impact to local bourse.

However, local developments and announcements are also influencing the movements of key companies.

The Malaysian Reserve looks at the gainers and losers last week and how they performed in an uncertain market.

TNB

Tenaga Nasional Bhd’s (TNB) market capitalisation rose 3.1% to RM79.84 billion following its board approval on the proposed internal reorganisation plan.

According to the national utility company, the proposed exercise is expected to improve the efficiency, agility and performance of the business segments of the TNB group of companies and promote ownership, entrepreneurship and innovation within the group.

TNB’s share price settled at RM13.62 last Monday and as of the end of the week, the group’s share closed 18 sen lower at RM13.86.

Analysts also said the move is to prepare the utility company for the liberalisation of the sector, especially its distribution.

RHB Bank

RHB Bank Bhd saw its value increased to RM22.34 billion from RM21.81 billion reported early of last week as Bank Negara Malaysia gave the nod for the country’s fourth-largest lender to sell its general insurance business to Tokio Marine Asia Pte Ltd.

RHB Bank announced last Monday that the central bank has no objection over the negotiations with Tokio Marine in relation to the proposed disposal of up to 94.7% of its equity interest in RHB Insurance. RHB’s shares surged by 10 sen following the recent development. The group’s share price closed seven sen lower last Friday at RM5.50.

It is not known how the sale of the huge share would influence the cap of foreign ownership of insurance companies. The sale, if it does not fall through, would provide an income boost as the banking sector faces lower interest income.

Press Metal Aluminium

Press Metal Aluminium Holdings Bhd expansion plan has driven growth in its market capitalisation over 4.8% to RM19.67 billion last week.

The aluminium producer has secured a long-term electricity supply contract with Sarawak Energy Bhd (SEB).

According to the group, it had signed a power purchase agreement with SEB’s wholly owned Syarikat SESCO Bhd to provide up to 500MW of electricity for 15 years. Press Metal Aluminium’s share price closed one sen lower last Friday at RM4.85.

FGV Holdings

Selling asset does not necessarily mean a share price spike. FGV Holdings Bhd’s plan to dispose its stake in sugar refiner, MSM Malaysia Holdings Bhd saw its market value dropped to RM4.05 billion from RM4.15 billion recorded in the previous week.

The crude palm oil producer’s CEO Datuk Haris Fadzilah Hassan reiterated its group will maintain its position as a major shareholder of MSM despite the stake disposal.

Last week, the group also in the spotlight following the news over its partnership with

Biotek Dinamik Sdn Bhd and Sime Darby Energy Solutions Sdn Bhd.

The partnership is to produce bio-compressed natural gas from waste biogas generated from palm oil mill effluent ponds. FGV’s share price closed four sen lower last Friday at RM1.07.

Takaful Malaysia Keluarga

Syarikat Takaful Malaysia Keluarga Bhd saw a total of RM2 million plight of its market capitalisation for the week after the launch of new takaful company, FWD Takaful Bhd last Monday.

FWD Takaful is backed by Hong Kong tycoon Richard Li, Employees Provident Fund (EPF) and Malaysia’s richest man Robert Kuok through JAB Capital Bhd. Takaful Malaysia Keluarga’s share price closed five sen lower last Friday to RM6.05, valuing the company at RM5.08 billion.

The entry of new player would rattle takaful operators who are also competing in a very competitive and niche market. Worries that the new takaful operator backed by Malaysia’s richest individual, valued at US$12.8 billion (RM53.25 billion) as of March this year, adds to anxiety as he seldom fails in his business venture.

Litrak

Lingkaran Trans Kota Holdings Bhd’s (Litrak) value dropped to RM2.48 billion last week after the government’s decision to put a brake on its plan to acquire four highways amounting to RM6.2 billion.

Following the news, Litrak’s share price dropped as much as 22 sen after Deputy Finance Minister Datuk Amiruddin Hamzah confirmed the highway price tag (RM6.2 billion) is not finalised.

Litrak’s share price closed nine sen lower last Friday to RM4.58.

The highway concessionaire’s share price hit a four-week high of RM4.97 and four-week low of RM4.50 in July.