Previous Day Highlights

FBM KLCI closed higher buoyed by persistent buying activities, in tandem with the positive regional performance. The benchmark index was up 0.34% or 5.17 pts to 1,533.55. Majority of sectors were positive with transportation (+0.9%), property (+0.8%), and energy (+0.6%), leading the gains; while losers were seen in utilities (-0.9%), and construction (-0.6%). Market breadth was positive with 553 gainers against 450 losers while 500 were unchanged. Total volume stood at 3.63bn shares valued at RM2.36bn.

Major regional indices trended broadly higher driven by upbeat momentum tracking Wall Street’s performance overnight. HSI gained 2.48%, to end at 16,339.96. Nikkei 225 was up 0.86%, to finish at 38,487.24. STI rose 1.42%, to close at 3,221.94.

Wall Street closed lower after the hotter-than-expected producer price index reignited investor concerns about potential interruptions to rate cuts. The DJIA dropped 0.37%, to end at 38,627.99. Nasdaq eased 0.82%, to close at 15,775.65. S&P500 eased 0.48%, to finish at 5,005.57.

Our Thoughts

Wall Street retreated as hotter than anticipated inflation data spooked traders and that the Federal Reserve may delay the prospect of rate cuts. As such, the DJI Average lost 145 points while the Nasdaq declined by 130 points as the US 10-year yield edged slightly higher at 4.281%. In Hong Kong, the HSI maintained its uptrend by adding 395 points to above the 16,300 level buoyed by buying from local funds on big tech stocks that are deemed cheap at prevailing levels coupled with that the Hong Kong market remains underinvested by foreign funds. Back home, the FBM KLCI closed on an 18-month high as buying by foreign funds continues. In view of the US markets facing with numerous headwinds, it thus understandable that some funds will flow into this region to find some stability. Nonetheless, we noticed retail participation remains low and will improve this week when all are back to work. For today, we expect the index to hover within the 1,535- 1,545 range.

News For The Day

KPJ Healthcare records higher 4Q net profit of RM73.39m

KPJ Healthcare's 4QFY12/23 net profit rose nearly 16% YoY to RM73.39m compared with RM63.41m, thanks to higher patient numbers and tax writeback. Revenue rose 19% YoY to RM911.5m from RM765.8m as patient numbers gained 4% YoY. The company declared a single-tier interim dividend of 1 sen per share. For the full year, net profit surged 57.75% YoY to RM263.4m from RM166.98m as revenue increased to RM3.42bn from RM2.87bn. -The Edge Market

MYEG Philippines to partner social insurance programme

My EG Services' joint venture company, MYEG Philippines, Inc, has entered into a partnership with the Social Security System of the Philippines (SSSPH) to facilitate the online payment of loans and contributions. MYEG said members of SSSPH, a staterun social insurance programme, will have access to payment options via www.myeg.ph, such as e-Wallets, credit/debit cards, bank transfers and cash payments via over-the-counter channels. Members also will be able to generate their Payment Reference Number (PRN) on the same platform, streamlining the payment process.-The Star

MRCB undertakes demolition works in Shah Alam for RM35m

Malaysian Resources Corp (MRCB) confirmed it was appointed by Menteri Besar Selangor Inc (Selangor MBI) to undertake the demolition works of the Shah Alam Stadium at a provisional contract value of RM35m. The stadium is expected to be fully demolished by mid-2025. The group is still negotiating with MBI to finalise the terms of the definitive agreement for the stadium's redevelopment of the stadium, which is separate from the demolition contract. -The Edge Markets

SNS Network to provide Esri's GIS solutions in Malaysia

SNS Network Technology has been appointed Esri Malaysia SB's value-added partner to market its geographical information solutions in Malaysia. SNS will sell the solutions to Esri's existing and potential customers from small and medium enterprises, public companies and government agencies. This collaboration allows SNS Network to expand its ICT services and solutions to include the state-of-the art geospatial technology.-The Star

LEAP-listed ICT Zone Asia propose transfer to ACE Market

ICT Zone Asia is considering transferring from the LEAP Market to the ACE Market on Bursa Malaysia. ICT Zone Holding proposed to undertake a cash exit offer together with Datuk Seri Ng Thien Phing, which will be extended through a preconditional voluntary general offer in ICT Zone Asia. -The Edge Markets

Source: Rakuten Research - 19 Feb 2024

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