Previous Day Highlights

FBM KLCI closed lower attributed to profit taking activities. The benchmark index down 0.45% or 6.91 pts to close at 1,545.49. Majority of sectors were positive with technology (+3.1%), industrial products & services (+0.5%), and health care (+0.3%), leading the gains; while losers were seen in utilities (-1.0%), and construction (-0.6%). Market breadth was positive with 571 gainers against 462 losers. Total volume stood at 3.72bn shares valued at RM2.58bn.

Major regional indices trended positive as investors weighted on China latest support. HSI gained 1.45%, to end at 16,742.95. SHCOMP increased 1.27%, to close at 2,988.36. Nikkei 225 up 2.19%, to finish at 39,098.68. STI rose 0.18%, to close at 3,222.94.

Wall Street closed higher powered by investors piling into growth and technology stocks. The DJIA added 1.18%, to end at 39,069.11. Nasdaq rose 2.96%, to close at 16,041.62.S&P500 rose 2.11%, to finish at 5,087.03.

News For The Day

Mcement, YTL Power stellar results lift YTL profit to RM589m

YTL Corp 2QFY6/24 net profit rose six-fold YoY to RM589.21m, lifted by stellar results from YTL Power International and Malayan Cement. YTL’s revenue rose by 14.2% YoY to RM7.53bn up from RM6.59bn. Its cement segment experienced higher volumes and stabilization in selling prices, moderating the impact of higher energy costs recorded by all divisions. MCement (75.8% of YTL Cement) posted a strong 2QFY6/24 net profit of RM121.2m from RM15.26m YoY, backed by revenue increase of 29% YoY to RM1.16bn. YTLPWR sustained its performance with its 2QFY6/24 net profit up four-fold YoY to RM845.12m, thanks to stable earnings in Singapore, on the back of better margins and a stronger SGD against the RM. - The Edge Market

Frontken’s FY23 net profit down 9% to RM111.9m

Frontken Corp’s FY23 net dipped 9% YoY to RM111.95m against the backdrop of slower demand from the semiconductor industry. Its 4QFY23 net profit was flat at RM29.71m versus RM29.84m YoY, on the back of a lower revenue of RM131.49m against RM135.27m. Frontken declared a dividend of 2.20 sen per share, taking the full year dividend to 4.20 sen -The Edge Markets

Ekovest disposes of 13 parcels of land for RM66.8m

Ekovest is disposing of 13 parcels of land in Kuala Lumpur to Airman SB in a related party transaction for RM66.8m. Ekovest said the divestment of land is consistent with the company’s principal business activity, enabling the immediate realisation of the land value. -The Star

CSC Steel logs threefold rise in FY23 profit - strong recovery

CSC Steel Holdings recorded its 4QFY23 net profit of RM10.49m compared with a net loss of RM347,000 YoY stemmed from effective cost optimisation strategies. Revenue grew 4.4% YoY to RM376.56m from RM360.72m. The group registered FY23 full year net profit of RM49.48m, over three times in FY2022 despite slightly weaker annual revenue, thanks largely to lower costs. It proposed to pay a final dividend of 9.4 sen for FY23. - The Edge Markets

Pintaras wins RM170m piling contracts

Pintaras Jaya has secured eight bored piling contracts worth RM170m in Singapore. These projects have already commenced work or will commence by March 2024 with contract periods ranging from three to 15 months-The Star

Our Thoughts

Wall Street finished higher with strong buying in tech stocks after Nvidia reported much stronger-than- expected quarterly results, lifting both the broader market and the tech sector. The Dow gained 1.2% while the Nasdaq jumped almost 3% (461 points). In Asia, major indices closed higher due to late buying. The Hong Kong market ended higher, driven by buying in tech stocks and strong corporate earnings, with the Hang Seng Index surging 240 points (1.45%). As for the local bourse, the FBM KLCI finished lower as profit-taking activities continued following the recent strong gains. Nonetheless, we perceive the profit-takings as a healthy correction, allowing the market to digest the recent uptrend and offering the opportunity to accumulate stocks at lower levels. As such, we anticipate the benchmark index to trend within the range of 1,540-1,550 for today.

Source: Rakuten Research - 23 Feb 2024

To sign up for an account : http://bit.ly/40BNqKI

[Youtube Tutorial] Account Opening & Enable Foreign Equity:http://bit.ly/3I5Jzxo