INVE$T | Market Sentiments
According to Bursa Malaysia CEO Datuk Muhamad Umar Swift, the exchange has announced another 12 months extension of the temporary relief measures for the increased general mandate of 20% for new issue of securities by way of private placement (20% general mandate) and the general mandate of 50% based on a pro-rata entitlement for new issue of securities by way of rights issue (pro rata 50% general mandate), each of which would expire on Dec 31, 2021. This extension is in line with Bursa Malaysia’s commitment to assist listed issuers to address their funding needs and working capital requirements by easing compliance and facilitate secondary fundraising. Covid-19 has had an unprecedented lingering impact on the listed issuers. It is imperative for listed issuers to be able to raise funds through the secondary market in an expedient, efficient and cost-effective manner during these challenging times. The 20% general mandate previously announced on April 16, 2020 will be extended for another 12 months for listed issuers that have not raised any funds using the 20% mandate in 2020 or 2021. Such listed issuers will have up to Dec 31, 2022 to issue new securities under the 20% general mandate subject to the same prescribed conditions. For example, procuring shareholders’ approval for the 20% general mandate at a general meeting, complying with all applicable legal requirements including the constitution and disclosing views from the board of directors that the 20% general mandate is in the best interest of such listed issuers and their shareholders as well as the basis for such views. The validity of the pro-rata 50% general mandate announced on Nov 10, 2020 is similarly extended for another 12 months until Dec 31, 2022. An eligible listed issuer may issue rights securities on a pro-rata basis using this mandate, subject to compliance with the same conditions as imposed earlier. Additionally, the pro-rata 50% general mandate can now be utilised to issue a combination of ordinary shares/units and convertible equity securities (instead of just ordinary shares/units previously) as part of the rights issue exercise.
PNB declares 5 sen income distribution for ASB unitholders
According to Permodalan Nasional Bhd (PNB) Group chairman Tun Arifin Zakaria, PNB’s wholly owned unit trust management company Amanah Saham Nasional Bhd (ASNB) has declared an income distribution payout of five sen per unit for its flagship unit trust fund Amanah Saham Bumiputra (ASB) for the financial year ending Dec 31, 2021. The payout comprised an income distribution of 4.25 sen per unit, as well as a bonus payment of 0.75 sen totalling RM8.9 billion which will benefit 10.4 million ASB unit holders, bringing the fund’s total cumulative income distribution and bonus to RM168.5 billion since it was first introduced in 1990. ASB’s performance remains competitive compared to other low-risk investment instruments, and continuous efforts in diversifying and strengthening the portfolio have yielded positive results. The stronger performance of its global equity investments has managed to cushion the impact of the challenging domestic market. This exemplifies the importance of a well-diversified portfolio in managing portfolio risks and delivering sustainable returns. The income distribution for ASB this year is competitive, a result of hard work and dedication of our investment team. The total rate of five sen per unit translates into a spread of 315 basis points over the 12-month fixed deposit rate which currently stands at 1.85%. ASB transactions are suspended from Dec 23 until Jan 2, 2022 for dividend distribution and will reopen on Jan 3, 2022.
Malaysia’s total approved investments up 51.5% y-o-y to RM177.8b in January to September – MIDA
According to Senior Minister and International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali, Malaysia attracted a total of RM177.8 billion in approved investments in the manufacturing, services and primary sectors, involving 3,037 projects, between January to September 2021. This represented a 51.5% increase compared to the same period last year and is expected to generate 79,899 jobs in the country. The country’s stellar performance is indeed a testament to investors’ strong confidence in Malaysia as a preferred investment hub, particularly its conducive business ecosystem in providing high-skilled talent and having strong readiness for advanced technology. This, in turn, further bolsters its role as a prominent site in global companies’ manufacturing networks, enhancing Malaysia’s position as a pioneering and renowned investment destination in the region. The manufacturing sector accounted for the largest share of total investments in the January-to-September period, amounting to RM103.9 billion (58.4%), followed by the services sector with RM57.8 billion (32.5%) and the primary sector with RM16.1 billion (9.1%). Foreign direct investment (FDI) accounted for nearly 60% of approved investments, valued at RM106.1 billion. Singapore, China, Austria, Japan and the Netherlands were the top five foreign investment sources, contributing nearly 85.3% or RM90.6 billion of total approved FDI. While FDI led approved investments in the manufacturing sector, investments from local companies dominated in the services and primary sectors. Domestic direct investment totalled RM71.7 billion or 40.3% of total approved investments. Five states, namely Kedah, Sarawak, Kuala Lumpur, Selangor and Pahang, contributed RM134.8 billion or 75.8% of total approved investments in various sectors.
Eye On The Markets
This week, on Friday (24Dec), the Ringgit opened at 4.1985 against the USD from 4.2285 on Monday (20Dec). Meanwhile, the Ringgit was 3.0916 to the Sing Dollar on Friday (24Dec). On Monday (20Dec), the FBM KLCI opened at 1497.57. As at Friday (24Dec) 10:00am, the FBM KLCI is up 18.35 points for the week at 1515.92. Over in US, the overnight Dow Jones Industrial Average closed up 196.67 points (+0.55%) to 35,950.56 whilst the NASDAQ added 131.50 points (+0.85%) to 15,653.40.