☕️ Olympics is over. Now, on to Parliament seat tally.

Foreign ownership of Malaysian equities fell to an all-time low of 20.2% in July 2021. 4 MY startups & firms made it to Forbes Asia’s inaugural “100 to Watch” list. Turkey's 1st decacorn - Trendyol.

1. MARKET SUMMARY


2. NUMBERS AT A GLANCE

0.5% - BioNTech, the German Covid-19 vaccine creator will singlehandedly boost German’s economy of USD3.8 tril by 0.5%. The German economy is expected to grow 3.7%, with BioNTech contributing 13% to German’s economy growth.

USD450,000 — the starting price of a seat on Virgin Galactic’s space flights. The company said it will have three consumer offerings - a single seat, a multi-seat package and a full-flight buy-out.

RM124.4 bil — Malaysia’s manufacturing sales in June 2021, an increase of 6.5% YoY. How did the figure increase when we were in full lockdown? In June 2020, the country was in RMCO.


3. COVID-19 SUMMARY

  • Some restaurant owners in Kelantan have opted to disallow dine-ins for fully vaccinated people despite the relaxation of SOPs announced on Sunday.

  • 15 officials in Nanjing have been punished by the authorities for failing to contain the Covid-19 outbreak at the Nanjing Lukou International Airport. The outbreak is said to have begun on July 20, 2021. The number of new infections since? 1,692 cases. Malaysia added 372,234 cases during the same period.

    What happened in MY? Both Health DG and Health Minister are still holding on to their posts. Senior minister got promoted to Deputy PM as well.

  • The ‘parliament cluster’ with 97 Covid-19 cases detected so far recorded its first casualty with the passing of a high-ranking government official. He was the special functions officer for Deputy Tourism, Arts and Culture Minister Datuk Guandee Kohoi.

  • Physical Covid-19 vaccination certificates have been spotted on online marketplaces, prompted Dr. Mohd Rushdan Noor to question how can authorities or anyone validate the authenticity of the certificates. JKJAV did say users will soon be able to print out the digital certificate from MySejahtera but not through online marketplaces.


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4. IN MALAYSIA 🇲🇾

Politics and Local

  1. Deputy Speaker Datuk Mohd Rashid Hasnon said he will announce the number of allowable individuals, including Members of Parliament (MPs), to be present in the first meeting of the Fourth Session of the 14th Parliament beginning from Sept 6. This is based on advice by the Ministry of Health (MoH) and the National Security Council (MKN).

    On behalf of all Malaysians, can we suggest this wonderful application call Zoom? The business plan costs a mere USD1,200 per year. Maximum 300 participants with polling feature available. You can mute without needing to appear rude — no need to say “Tolong boleh diam tak?” anymore. (Not a sponsored post, we swear)

    The deputy speaker also said Dewan Rakyat has yet to receive the motion of confidence on Prime Minister Tan Sri Muhyiddin Yassin.

  2. A 61-year-old man who mocked the Kedah Mentri Besar Muhammad Sanusi Md Nor in a 9.19 minute video on Sunday has been nabbed by the police at 4am on Monday morning. He has since been released on bail. The order was issued by the registrar of the Sungai Petani Magistrate Court for him to be remanded.

    Two more individuals have also been nabbed over comments on Facebook over the double-standard treatment that the MB had allegedly received for his violation of SOP. Be careful about what you post online!

  3. Malaysian Medical Association (MMA) revealed about 400 contract doctors have resigned since January 2021, mainly out of frustration. The government seems to be able to spend RM30 million buying over politicians but is unable to provide a better future for our doctors.

Business

  1. Foreign investors are seeking safer havens as foreign ownership of Malaysian equities dropped to an all-time low of 20.2% of total market capitalisation as at end-July 2021 from 20.3% as at end-June 2021 as the country’s combined foreign portfolio outflow (equities and bonds) according to UOB Global Economics & Markets Research's note.

    The outflow tripled from RM1.7 bil to RM5 bil amid factors including Covid-19 uncertainties and US quantitative easing (QE) tapering anticipation.

  2. Datasonic Group Bhd is said to be the front runner for the MyKad replacement contract, worth about RM350 million because of its expertise in the production of trusted identity documents such as the MyKad, which it has produced since 2011.

    Back in May 2016, Datasonic was awarded a RM260.4 million contract for the supply of 12 million raw MyKads and MyKad consumables to the National Registration Department — the cost of each new MyKad back then was said to be RM20.

  3. Shareholders of Genetec Technology Bhd are probably some of the happiest folks in Malaysia as it is the best performing stock on Bursa Malaysia thus far this year, gaining 1,368% since end-2020.

    The company has received orders from customers in the electric vehicle and battery industry since last December. Genetec returned to the black in the first quarter ended June 30, 2021 (1QFY22) with a net profit of RM8.18 million.

    Based on the price-earnings ratio (P/E) of 20 times, Genetec will have to earn a net profit of RM64.5 million for FY22. Well, its peers such as GREATEC is trading way above that P/E ratio. Will Genetec be able to maintain its momentum to end the year and get featured on Stockbit’s 10 baggers? Join Stockbit today to discuss ideas on trading in Malaysia’s equity markets!

  4. Forbes Asia’s inaugural “100 to Watch” list was released yesterday, with four Malaysian firms & startups made it to the list! Congratulations!


5. AROUND THE WORLD 🌎

  1. 6-time Ballon d’Or winner Lionel Messi is set to join French football club Paris Saint-Germain in a deal worth GBP25 mil (USD34.6 mil) a year after tax, plus bonuses with an option to extend his stay for another year. Messi will also receive a GBP25 mil sign-up fee. 

    The 34-year-old Messi expressed his intention to continue his 21-year stay in Barcelona. However, the club announced that they could not complete the deal due to “financial and structural obstacles” despite Messi agreeing to a 50% wage cut. 

  2. The world’s biggest energy company, Saudi Aramco announced net income of 95.5 bil riyals (USD25.5 bil) in the 2nd quarter, the highest level since the end of 2018. The company attributed the results to the global easing of Covid-19 restrictions, vaccination campaigns, stimulus measures and accelerating activity in key markets. Crude prices are up around 35% this year. For comparison, Exxon Mobil last month announced a net income for its 2nd quarter of USD4.67 bil and Royal Dutch Shell reported USD5.53 bil in net income - both combined not even half of Aramco’s. 

    Free cash flow was USD22.6 bil in the 2nd quarter, allowing it to maintain a dividend payout of USD18.75 bil to its largest shareholder, the Saudi government. Aramco pays the world’s largest dividend of USD75 bil per year. It spent USD7.5 bil on capex in the 2nd quarter and is working to increase its capacity to 13 mil barrels per day.

    Deals:

  3. National Australia Bank will buy Citibank’s local consumer unit for AUD1.2 bil (USD882.24 mil), as the American bank continues its exit from the region. NAB will absorb over AUD12 bil in loans, AUD9 bil in retail deposits and 800 current employees of Citigroup in Australia. 

  4. Trendyol, an e-commerce platform, has become Turkey’s first decacorn, as it raised USD1.5 bil in a massive round that values it at USD16.5 bil. General Atlantic, SoftBank Vision Fund 2, Princeville capital and sovereign wealth funds, ADQ (UAE) and Qatar Investment Authority co-led this round. This investment marks SoftBank’s first in the country. This round came months after Alibaba’s USD350 mil investment in Mar 2021 that valued the company at a USD9.4 bil valuation. 

    Founded in 2010 Trendyol is the largest e-commerce company inTurkey, serving more than 30 mil shoppers and delivering more than 1 mil packages per day. Following the same playbook as Shopee, the company has evolved from a marketplace to a “superapp” with offering such as instant grocery, food delivery, digital wallet and other services. Turkey e-commerce market size is estimated to be USD17 bil in 2020, with further room for growth as e-commerce constitutes only 5.3% of Turkish retail market. 

  5. Just 2 months after its last funding round of USD6 mil Series A, Pintu, Indonesian crypto asset platform announced it had closed a USD35 mil Series A+ round, led by Lightspeed Ventures, with participation from returning investors like Coinbase Ventures, Pantera Capital and Intudo Ventures. No valuation was disclosed. 

  6. For many of Pintu’s users, crypto has become a gateway to investing instead of stocks.  According to the Indonesian Ministry of Trade, as of June 2021, there were over 6.5 mil crypto investors or about triple the 2.2 mil public equity investors in Indonesia. In H1 2021, Pintu ays app downloads grew by 3.5x through organic growth, and active traders increased by 4x. It currently offers trades on 16 cryptocurrencies, with more to come. 

    News in Brief:

  7. More than 80,000 people have been evacuated due to heavy rains and floods in the southwestern Chinese province of Sichuan, with more than 440,000 people affected by the floods in the 6 cities across the province. So far, it is estimated that the heavy rain had caused RMB250 mil (USD38.6 mil) in economic losses.

  8. Nearly 9,000 people in Germany will need to be vaccinated again after a nurse administering the shot swapped the vaccine for a harmless saltwater solution after dropping a vial of Pfizer vaccine in April. The nurse didn’t tell anyone what she had done until Saturday, when she confided in a colleague and since has been suspended.


6. FOR YOUR VIEWING PLEASURE 👁👁

  1. The biggest movie franchise ever

  1. Olympic is over. Now, on to Parliament - the latest seat tally.

We’ve been covering so much news lately, we forgot to spend time to mourn with those who have lost someone they knew and loved due to Covid-19. We are sorry for your loss. Stay safe and take care.

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