Latest news with #422
New Straits Times
3 days ago
- Business
- New Straits Times
Tariff uncertainty casts shadow over Ann Joo outlook
KUALA LUMPUR: Ann Joo Resources Bhd's performance is expected to remain subdued in the second quarter of 2025 as tariff uncertainties continue to pressure the group's domestic and export sales, said CIMB Securities Research. According to the firm, the local steel industry is monitoring any indirect impact from a potential diversion of Chinese steel products. However, it noted that China exported only 40,000 tonnes of long-steel products such as rebar and billets to the United States in 2024, accounting for less than 0.1 per cent of its total steel exports. As of May 29, local rebar prices had declined to RM2,422 per tonne from about RM2,800 per tonne in November 2024, but remained 32 per cent above Chinese rebar prices, which stood at RM1,830 per tonne. Even so, the firm expects China's planned production cuts to provide support to global steel markets if implemented in the second half of the year. "On the demand side, Ann Joo's order flow visibility could improve alongside the gradual rollout of major infrastructure initiatives in Malaysia and another S$35 billion to S$39 billion worth of big-ticket awards in Singapore," it said. Meanwhile, CIMB Securities said Ann Joo's first-quarter results fell short of expectations, with core losses of RM109 million as revenue declined 18 per cent year-on-year. It attributed the weaker performance to lower selling prices and sales tonnage, amid renewed concerns over reciprocal tariffs imposed by the US administration, which have dampened sentiment in international steel markets. "We now project Ann Joo to post financial year 2025 (FY25) core losses of RM178 million and we have cut our FY25 to FY26 core profit estimates by 4-8 per cent to between RM64 million and RM87 million. "Following the earnings downgrade, we lower our target price for Ann Joo to 83 sen from RM1.02," it said, while maintaining a "Buy" call on the stock.
Gulf Today
25-04-2025
- Gulf Today
Dubai upholds jail term of a gang for impersonating police officers
Dubai Court of Cassation upheld the ruling of the Court of First Instance, which had been previously affirmed by the Court of Appeals. The verdict sentenced a gang consisting of a Gulf national and five Asians to three years in jail, the deportation of the Asians after serving their sentences, and fining them collectively Dhs1,422,000. The gangsters allegedly had impersonated police officers, detained the owner of a general trading company and others, assaulted them, and stole the amount of the fine. The details of the case date back to August 2022 when the owner of a general trading company filed a report stating that he had been assaulted, detained within his workplace, and his money stolen. He added that a person wearing Gulf attire and others knocked on the company door and upon entering, they claimed to be detectives from Dubai, with one of them briefly showing a military ID card before hiding it. Shortly after, three more individuals allegedly arrived at the place. The victim added in the interrogations that the first suspect assaulted him in collaboration with the others. One of them restrained him and his colleague, the second victim, who happened to be present in the company. They then assaulted them and stole Dhs500,000 from the company safe, along with a camera storage unit. The second victim stated that he saw one of the suspects assault an employee who had entered the company with Dhs1,200,000. He resisted, but the suspect assaulted and restrained him before all the perpetrators fled the scene. A police man testified that an investigation team identified the suspects and arrested them, finding Dhs281,000 in their possession. Four of them admitted during the interrogation that the first and second had asked them to participate in robbing a trading company in the Naif area. After committing the crime, each received Dhs50,000, while the others confessed to planning the crime and stealing Dhs700,000 from the company, with the seized money being part of the stolen amounts.
Express Tribune
06-03-2025
- Business
- Express Tribune
Stock splits gain momentum at PSX
Listen to article The Pakistan Stock Exchange (PSX) is witnessing a surge in stock splits as major companies seek to improve liquidity and investor participation. Recent approvals from the Securities and Exchange Commission of Pakistan (SECP) have made stock splits a more attractive option, especially compared to bonus shares, which now carry tax implications. Leading firms such as Lucky Cement (LUCK), Arif Habib Corporation Limited (AHCL), and AirLink (AIRLINK) have announced stock splits to make shares more affordable and enhance market engagement. These developments position stock splits as a key tool for boosting trading volumes and stabilising stock prices. "The stock splits are not just a numerical adjustment; they serve as a powerful tool to boost investor participation, improve liquidity, and enhance market stability," wrote Sana Tawfik, Research Head at AHL, in her report 'Market Strategy: Stock Splits Gain Momentum at PSX.' PSX has seen renewed interest in stock splits, with key players leveraging this strategy to enhance market participation. In December 2024, the SECP approved guidelines on stock splits by listed companies. These guidelines, formulated after extensive stakeholder consultations, make stock splits a more viable financial strategy, particularly for companies with high share prices. By increasing the number of shares in circulation, stock splits improve market efficiency and trading volumes while maintaining price stabilitya win-win for issuers and investors. Why splits over bonus shares? Unlike bonus shares, which come with tax implications, stock splits offer a tax-efficient (almost free) method for companies to increase affordability and enhance market engagement. The Finance Act 2023 reinstated tax on bonus shares, a move previously introduced in 2014 but removed in 2018. Companies issuing bonus shares must now withhold 10% of the issued shares, making stock splits a more attractive alternative. Lucky Cement announced a 5-for-1 stock split in a notice to PSX on February 21, 2025, following a board recommendation on February 20. Subject to shareholder approval at an Extraordinary General Meeting (EoGM) on March 18, the number of ordinary shares will increase from 293 million to 1.465 billion, while the pre-split stock price will be divided by five. Following the announcement, LUCK's stock price rose by 0.9%, climbing from Rs1,422/share to Rs1,435/share. Arif Habib Corporation Limited has proposed a 10-for-1 stock split to boost liquidity and investor accessibility. The face value will be reduced from Rs10 to Rs1, with shareholders receiving 10 shares of Rs1 each for every 1 share of Rs10 held. The proposal awaits shareholder approval at an EoGM on March 19, with an effective date to be announced post-regulatory approvals. Since the announcement, the stock price has surged by 11.3%, rising from Rs80/share to Rs89.7/share. AirLink announced a 5-for-1 stock split, effective February 28, 2025, to enhance investor accessibility and improve market liquidity. The par value of the stock will decrease from Rs10/share to Rs2/share, effective March 11. The number of ordinary shares will increase from 395.3 million to 1.976 billion. However, following the split, the stock price declined by 5.4%, falling from Rs187/share to Rs177/share. Three companiesNational Foods Limited (NATF), Hum Network Limited (HUMNL), and Synthetic Products Enterprises Limited (SPEL)have previously undergone stock splits, with varying impacts on their trading activity. NATF was the first PSX-listed company to announce a stock split. It executed a 2-for-1 stock split, reducing the face value of its shares from Rs10 to Rs5. The company's average six-month trading volume before the split was 25,062 shares. Following the split, liquidity improved, leading to an increase in trading activity to 40,854 shares. HUMNL announced a 10-for-1 stock split in October 2014 after its stock price rose to Rs171.8. The split reduced the par value of shares from Rs10 to Rs1. Before the split, HUMNL's average six-month trading volume was 1.6 million shares. Following the split, liquidity improved significantly, increasing trading activity to 4.4 million shares. SPEL executed a 2-for-1 stock split, lowering the face value of its shares from Rs10 to Rs5.
