Previous Day Highlights

FBM KLCI closed marginally higher amid cautious sentiment ahead of the closure of Bursa Market for Federal Territory Holiday. The benchmark index up 0.02% or 0.23 pts to close at 1,512.98. Majority of sectors were negative with technology (-1.6%), utilities (-0.7%), and consumer (-0.6%) leading the lossses; while gainers were seen in energy (+1.8%), and REIT (+0.9%) and health care (+0.7%). Market breadth was negative with 635 losers against 401 gainers. Total volume stood at 3.67bn shares valued at RM2.86bn.

Major regional indices trended mixed as uncertainty prevailed after the Federal Reserve decided to maintain interest rates. HSI gained 0.52%, to end at 15,566.21. SHCOMP dropped 0.64%, to close at 2,770.74. Nikkei 225 eased 0.76%, to finish at 36,011.46. STI slid 0.32%, to close at 3,143.06.

Wall Street closed higher following yesterday's sell-off as investors awaited a slew of corporate earnings. The DJIA added 0.97%, to end at 38,519.84. Nasdaq rose 1.30%, to close at 15,361.64. S&P500 gained 1.25%, to finish at 4,906.19.

News For The Day

F&N’s 1Q net profit falls 14% on one-off non-operating items

Fraser & Neave Holdings’ (F&N) 1QFY9/24 net profit fell 14.11% to RM170.74m from RM198.8m due to one-off non-operating items. Quarterly revenue, however, grew 9.39% YoY to RM1.33bn from RM1.22bn, driven by continuing momentum for food and beverages (F&B) in Thailand and Malaysia, as well as higher exports aided by favourable foreign exchange translation from a stronger Thai baht.-The Edge Markets

Bursa Malaysia’s 4Q earnings up 21.5%

Bursa Malaysia reported a 21.5% YoY growth in 4QFY12/23 net profit, driven by trading revenue from the securities market amid higher average daily trading value (ADV). Net profit rose to RM59.55m from RM49m YoY. The group declared a final dividend of 14 sen. Although full year FY23 ADV for the securities market’s on-market trades grew by a meagre 0.5% to RM2.1bn, Bursa Malaysia’s FY23 net profit increased 11.4% to RM252.38m from RM226.57m, thanks to lower operating expenses. The group declared a final dividend of 14 sen. -The Edge Markets

CTOS Digital posts record-breaking earnings for FY23

CTOS Digital saw its 4QFY12/23 net profit surge fourfold YoY to RM56.28m from RM14m, largely due to the recognition of a tax credit and higher revenue. Revenue for the quarter jumped 38.69% YoY to RM73.15m from RM52.74m. CTOS achieved a record-breaking net profit of RM118.37m for FY23, up 65.05% YoY from RM71.72m, while revenue grew 34.22% YoY to RM261.44m from RM194.78m. CTOS declared a fourth interim dividend of 1.706 sen per share, payable on March 27, totalling to 3.329 sen per share for FY23.-The Edge Markets

Kimlun bags RM133.6m construction job

Kimlun Corp’s wholly-owned subsidiary, Kimlun SB, has accepted a construction contract from Sunway Parkview SB for main building works for houses, ancillary buildings and amenities in its development in Johor Baru, Johor, for RM133.60m. Kimlun said the construction work is expected to be completed in the 3QCY26.-The Star

GDB clinches RM306m hospital project in Bukit Jalil

GDB Holdings has clinched a RM306m project to develop a private hospital at Bukit Jalil, Kuala Lumpur. The project includes execution, performance, design, construction, completion, commissioning of machinery and equipment and maintenance of the private hospital building. The construction of the hospital will be carried out over a period of 25 months, commencing on March 16. -The Edge Markets

Our Thoughts

Wall Street finished higher as bargain hunting emerged particularly on tech stocks following the earlier sell-off. The DJIA gained 60 points (0.16%), while Nasdaq lost 55 points (0.36%) led by selling on Intel. The Dow rose 370 points (0.97%) while the Nasdaq surged 198 points (1.3%). In Asia, key indices closed lower following negative cue from global equities overnight as the US Fed quashed expectations for interest rate cuts in March 2024. Nonetheless, bargain hunting activities are seen in HK given their cheap valuations with the with led to a 76 points or 0.5% rise in the HSI. As for the local bourse, the FBM KLCI close relatively flat on Wednesday impacted by the cautious sentiment across the region. We remain vigilant and expect benchmark index to stay in consolidation mode at this juncture until more clarity surfaces. Thus, we anticipate the FBM KLCI to trend within the range of 1,510-1,520 for today.

Source: Rakuten Research - 2 Feb 2024

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