Westports gets cargo lift from Gemini shift, trade turmoil
It said the volume growth resulted in a one-off boost to Westports' trans-shipment (t/s) volume in the first three months of 2025, as Hapag-Lloyd reshuffled its boxes when it joined Gemini and got a permanent boost to Westports' t/s volumes.
'Two of Evergreen's container shipping services were relocated to call at Westports instead of Port of Tanjung Pelepas (PTP) from April 1, 2025 (Evergreen relocated five services from PTP to the Port of Singapore),' it said in a research note today.
CGS MY said Evergreen's move was directly linked to the higher t/s volumes that Gemini's Maersk and Hapag-Lloyd have given to PTP due to Gemini's transition to the hub-and-spoke model.
It also opined that Westports' t/s volumes for 2Q 2025 were boosted by the US trade war with China, which started on April 2, 2025, but was largely suspended for 90 days on May 14, 2025.
It added that the collapse in US-China trade in April caused shipping lines to redeploy their vessels to other trades, but US-China shipping capacity was reinstated after mid-May as US import demand returned.
'The whiplash vessel deployments resulted in greater t/s moves at both Port Klang and Singapore, according to Westports,' it said.
CGS MY said a modest 3.4 per cent year-on-year (y-o-y) recovery to 11.19 million t/s in 2026 is expected, further accelerating to 5.5 per cent y-o-y to 11.80 million t/s in 2027, as manufacturers' efforts to move production out of China to Southeast Asia in light of the US trade war against China would begin to positively impact Malaysia's containerised volumes.
'Y-o-y growth in Average Revenue Per Teu (ARPT) and sequentially stronger container volumes in 2Q25F to be potential share price rerating catalysts for Westport,' it said.
Meanwhile, CGS MY stated that the 15 per cent rise in port charges from July 15, 2025, would also boost Westports' 3Q 2025 results.
'Downside risks include the potential for the US to resume punitive trade tariffs on global economies (ex-China) after the 90-day reprieve ends on July 8, 2025, and a possible global recession that could impact the volumes on all container trade routes,' it added. — Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
9 minutes ago
- Malay Mail
Minister clarifies halal status of Hospital Canselor Tuanku Muhriz caterer amid audit report concerns
KUALA LUMPUR, July 23 — Higher Education Minister Datuk Seri Zambry Abd Kadir today clarified that the delay in halal certification for the food service provider awarded the patient meal contract at Hospital Canselor Tuanku Muhriz (HCTM) was due to technical issues in the application process, not non-compliance with halal standards. He said the matter should not alarm the public, as it does not suggest the company involved is operating outside halal requirements. 'The issue is not that the company doesn't practise halal procedures, but rather a technical delay in obtaining the certificate. 'The halal certification process in Malaysia applies not to the company as a whole, but to the specific premises,' he said during the debate on the Auditor-General's Report in Parliament today. Zambry explained that once a company is awarded a tender, it is typically given six months to apply for halal certification. However, in this case, the process took more than a year due to administrative setbacks, including delays in appointing a Person in Charge (PIC), which is required for the certification process. 'The company was awarded the tender in 2024, but the PIC was only appointed on April 14, 2025. Without the PIC, the company could not even begin the application process. 'Only after the PIC is in place can the company begin uploading details into the halal system, undergo audits, and proceed with inspections,' he said. This lengthy, sequential process, Zambry said, led to delays that exceeded the stipulated six-month period. He also noted that while the specific premises used for HCTM had yet to be certified, other premises under the same company already held valid halal certification. He added that all food suppliers working with the company were halal-certified. 'This shows that the company does observe halal standards. The issue lies with procedural inefficiencies that we need to correct moving forward,' he said. On Monday, the Auditor-General's Report (LKAN) 2/2025 revealed that HCTM had awarded a three-year catering contract worth RM25.64 million to a company that did not yet possess halal certification from the Department of Islamic Development Malaysia (Jakim). According to the report, the company was granted the tender to supply patient meals at HCTM from February 2024 to February 2027. The report also noted that the objective of the tender was to provide halal meals to patients, in line with the hospital's Main Kitchen, which is certified halal by Jakim.
Malay Mail
39 minutes ago
- Malay Mail
RM100 cash boost sends consumer stocks soaring, KLCI ends at day's high
KUALA LUMPUR, July 23 — Late bargain hunting of consumer-related stocks pushed Bursa Malaysia to close at its intraday high on Wednesday, allowing the market to recover losses in the previous two sessions. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) bounced 10.39 points, or 0.68 per cent, to close at an intra-day high of 1,529.79 from yesterday's close of 1,519.40. The benchmark index opened 0.08 of a point higher at 1,519.56 and moved between 1,519.48 and 1,529.79 throughout the trading session. Gainers led losers in the broader market 627 to 387, while 496 counters were unchanged and 969 untraded, with seven suspended. Turnover jumped to 3.27 billion shares worth RM2.26 billion from 2.82 billion shares worth RM2.05 billion on Tuesday. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said the FBM KLCI closed the day on a firmer footing as the market sentiment was lifted following Prime Minister Datuk Seri Anwar Ibrahim's announcement of a one-off RM100 cash handout, which drove renewed interest in consumer-related stocks. 'As a result, the consumer sector led gains among FBM KLCI constituents,' he told Bernama. Mohd Sedek said regional markets also posted broad-based gains, supported by improved sentiment after the United States agreed to impose a reduced 15 per cent import duty on selected Japanese goods, which exclude strategic items such as steel and aluminium, which remain subject to elevated tariffs. 'This marked a de-escalation from the previously threatened 25 per cent levy scheduled to take effect on Aug 1 in the absence of a bilateral agreement,' he added. Similarly, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the key index closed higher as major regional bourses staged a strong rebound after US President Donald Trump announced that he had completed a 'massive deal' with Japan. 'Back home, despite heightened external volatility, we believe Malaysian equities remain fundamentally resilient. The benchmark index is attempting to reclaim the 1,530 level, and a breakout supported by strong volume could pave the way for a sustained upward trajectory. 'As such, we maintain our weekly FBM KLCI target at between 1,510-1,540,' he added. Regionally, Hong Kong's Hang Seng advanced 1.13 per cent to close at 25,413.48, Singapore's Straits Times Index improved 0.47 per cent to 4,227.85, and South Korea's Kospi gained 0.44 per cent to 3,183.77. Japan's Nikkei 225 rallied 3.51 per cent to 41,171.32. Of the heavyweight stocks, Maybank earned six sen to RM9.59, Tenaga Nasional was 16 sen better at RM13.94, and CIMB gained 12 sen to RM6.67. IHH Healthcare improved two sen to RM6.62, CelcomDigi added four sen to RM3.83, while Public Bank dropped two sen to RM4.29. Top gainers were led by Nestle, which jumped 94 sen to RM76.90, while Fraser and Neave and Hong Leong Industries added 26 sen to RM28.70 and RM13.26, respectively. UMW was 19 sen better at RM2.24, while Vitrox and Sam Engineering gained 17 sen each to RM4.74 and RM4.19. Among the most active stocks, NexG gained 1.5 sen to 52 sen, while Tanco and Ekovest both added half-a-sen to 91.5 sen and 39.5 sen, respectively. Zetrix was two sen better at 94.5 sen, and Green Packet topped up half-a-sen to five sen. On the index board, the FBM Emas Index climbed 74.81 points to 11,494.54, the FBMT 100 Index rose 72.22 points to 11,254.16, and the FBM Emas Shariah Index advanced 69.13 points to 11,516.48. The FBM 70 Index added 88.22 points to 16,644.09, while the FBM ACE Index gained 40.45 points to 4,665.05. Sector-wise, the Financial Services Index bounced 119.58 points to 17,430.25, the Energy Index edged up 3.01 points to 743.18, the Industrial Products and Services Index rose 1.39 points to 155.43, and the Plantation Index gained 15.29 points to 7,411.44. The Main Market volume expanded to 1.44 billion units valued at RM1.89 billion from yesterday's 1.18 billion units valued at RM1.73 billion. Warrant turnover increased to 1.52 billion units worth RM257.66 million from 1.31 billion units worth RM205.15 million previously. The ACE Market volume slipped to 315.55 million units valued at RM97.33 million from 322.4 million units valued at RM109.22 million previously. Consumer products and services counters accounted for 248.46 million shares traded on the Main Market; industrial products and services (234.92 million), construction (157.21 million), technology (229.14 million), SPAC (nil), financial services (64.41 million), property (210.56 million), plantation (16.56 million), REITs (22.51 million), closed-end fund (9,200), energy (59.21 million), healthcare (73.52 million), telecommunications and media (61.65 million), transportation and logistics (30.99 million), utilities (29.37 million), and business trusts (285,700). — Bernama
Malay Mail
39 minutes ago
- Malay Mail
Teo Nie Ching: RM100 SARA aid via MyKad ensures transparency and direct benefits
KUALA LUMPUR, July 23 — The one-off RM100 cash assistance to be disbursed to all Malaysian adults through MyKad under the Sumbangan Asas Rahmah (SARA) programme is a targeted approach that ensures transparency so that the aid reaches the people directly, said Deputy Communications Minister Teo Nie Ching. She said the mechanism allows every Malaysian aged 18 and above to use the assistance to purchase essential items while preventing unnecessary or harmful spending. 'I believe SARA has clear benefits as it can be used specifically for purchasing basic necessities, and not for buying cigarettes, alcohol, or other non-essential items. 'So with the aid channelled through MyKad, I think this initiative can truly benefit all Malaysians aged 18 and above,' she said in a phone interview with Bernama Radio today. Teo said this in response to Prime Minister Datuk Seri Anwar Ibrahim's special announcement on the initiative in conjunction with the National Day 2025, which involves an allocation of RM2 billion and will benefit over 22 million of the country's population. Meanwhile, Teo also welcomed the doubling of the Rahmah Madani Sales programme allocation from RM300 million to RM600 million this year, which she said would allow more people, especially those in the B40 group, to access essential goods at lower prices. 'Prices at Rahmah Madani Sales are incredibly affordable. For instance, I recently visited one in my area last weekend, and a pack of instant noodles was sold at RM3.70, while in regular supermarkets it's at least RM4 or more, sometimes even reaching RM5. 'We also saw eggs and many other necessities being sold at very low prices. So I believe this expansion will greatly benefit more communities, especially in the B40 group,' she said. Teo also lauded the government's plan to set the price of RON95 petrol at RM1.99 per litre through a fuel subsidy targeting mechanism. 'This new RON95 price of RM1.99 per litre is excellent news for all Malaysians. It also ensures a clear distinction between locals and foreigners, where only Malaysians enjoy the subsidised rate. Foreign nationals should not benefit from our government's fuel subsidies. With this move, all Malaysians stand to benefit,' she said. Earlier today, Anwar announced several key initiatives as part of the Madani Government's appreciation for the people, including a one-off RM100 SARA aid via MyKad for all Malaysian adults, postponement of toll rate hikes for 10 highways, and a lower subsidised RON95 petrol price of RM1.99 per litre. — Bernama
