MONEY MASTER

RHB Research has downgraded the Malaysian transportation sector from 'overweight' to 'neutral,' citing limited upside potential as key players, Malaysia Airports Holdings Bhd (MAHB) and Westports Holdings Bhd, reach their fair valuations. Key Takeaways: Downgrade Due to Valuation Concerns : The downgrade reflects RHB's view that stocks like MAHB and Westports have hit their fair valuations, limiting potential for further growth. MAHB saw a strong 74% year-on-year profit increase in the first half of FY2024 due to the recovery in international passenger traffic, but its share price is now close to its privatization offer price of RM11, suggesting limited upside. Positive Outlook on Tasco Bhd : Despite a 25% year-on-year drop in Tasco Bhd’s core net profit for 1QFY2025 due to weaker contract logistics and air freight performance, RHB maintained a 'buy' call with a target price of RM1.15. The positive outlook is based on Tasco's diversified client base, bus...

The proposed $14.9 billion takeover of US Steel by Japan's Nippon Steel has raised national security concerns in the US, with fears that the acquisition could jeopardize the supply of steel crucial for key sectors like transportation, construction, and agriculture. The Committee on Foreign Investment in the United States (CFIUS) outlined these concerns in a 17-page letter to both companies. Key Takeaways: National Security Concerns Cited by CFIUS : CFIUS argues that Nippon's control over US Steel could lead to reduced domestic steel production capacity. The committee also emphasized that Nippon, as a foreign entity, may be less inclined to seek trade protections against cheap foreign steel, particularly from China, which continues to flood global markets with low-cost exports due to government interventions. This position reflects apprehensions about the potential for a weaker stance on protecting US steel interests under foreign ownership. Political and Trade Implications : Th...

Shares of Pansar Bhd (KL) reached their highest level in nearly three months on Monday after the company secured a substantial RM804.7 million contract. The stock rose by as much as 6.1%, or 3.5 sen, to 60.5 sen, its highest since June 12, 2024, before settling at 59.5 sen in early trading. This movement gave Pansar a market capitalization of RM304 million on Bursa Malaysia. Key Takeaways: Major Contract Win for Urban Transportation Project : Pansar's recent surge in stock price follows the announcement of an RM804.7 million contract win for the Kuching Urban Transportation System (KUTS) Blue-Line Package 2 in Sarawak. This project involves infrastructure construction, including architectural design, mechanical and electrical works, roadworks, and other related activities, for the stretch between Stutong and Hikmah Exchange. Increased Trading Activity : The stock saw heightened trading activity, with 1.09 million shares traded, nearly triple the 200-day moving average. Despite the ...