Previous Day Highlights

FBM KLCI ends week marginally higher after two-day losing streak. The benchmark index up 0.23% or 3.62 pts to close at 1,549.11. Gainers were seen in utilities (+3.14%), property (+0.40%), and REIT (+0.39%); while losers were seen in health care (-1.43%), plantation (-1.16%), and telecommunications (-1.05%). Market breadth was negative with 613 losers against 448 gainers. Total volume stood at 4.07bn shares valued at RM3.21bn.

Major regional indices trended largely higher. HSI declined 0.10%, to end at 16,725.86. SHCOMP increased 0.55%, to close at 3,044.88. Nikkei 225 up 2.19%, to finish at 39,098.68. STI slid 1.18%, to close at 3,184.91.

Wall Street closed mixed after US chipmaker Nvidia's blockbuster earnings energised tech stocks. The DJIA added 0.16%, to end at 39,131.54. Nasdaq eased 0.28%, to close at 15,996.82. S&P500 rose 0.03%, to finish at 5,088.79.

News For The Day

Samchem returns to the black in 4Q on improved margin

Samchem Holdings returned to profitability in 2QFY23 with a net profit of RM10.35m versus a net loss of RM2.13m a year ago, helped by improved profit margin as well as recognised other income. Quarterly revenue for the quarter ended rose 12.81% to RM308.31m from RM273.31m previously on higher sales volume.- The Edge Markets

Telekom Malaysia 4Q net profit more than doubles

Telekom Malaysia (TM) 4QFY23 net profit more than doubled YoY to RM433.53m thanks to tax credits and higher data revenue as well as lower costs. For 2024, the company said it is targeting “low single-digit” growth in revenue and earnings before interest and tax of between RM2.1bn and RM2.2bn.-The Edge Markets

PIE Industrial 4Q net profit up 5.8%

PIE Industrial’s 4QFY23 net profit rose 5.81% YoY to RM29.7m mainly due to higher investment income and forex gains, coupled with lower costs. The improved earnings were despite a 12.96% decline in quarterly revenue to RM297.15m versus RM341.42m previously. -The Edge Markets

MR D.I.Y 4Q net profit up 16.6%,

MR D.I.Y Group is confident of its prospects amid strong demand for essential products during inflation and rising living costs, according to chief executive officer Adrian Ong. “Our growing store network makes us increasingly accessible to more Malaysians and underpins our role as their go-to retailer for everyday household items.-The Star

Seng Fong posts best quarterly earnings since listing

Seng Fong Holdings has proposed a private placement in a bid to raise up to RM38.92m for its capital expenditure and working capital. At the same time, the rubber processor producer and trader also announced a bonus issue of up to 190.28m shares, on the basis of one bonus share for every three existing shares, held on an entitlement date to be announced later.-The Edge Markets

JWD emerges as substantial shareholder in Swift Haulage

Thailand-listed SCGJWD Logistics PCL (SJWD) has emerged as a substantial shareholder of Swift Haulage with a 20.44% stake after the completion of its share acquisition in Swift Haulage. SJWD’s wholly-owned unit, Singapore-based logistics firm JWD Asia Holding Pte Ltd, acquired the stake in Swift Haulage comprising 180m shares on Thursday at 63 sen apiece or a total of RM113.4m.-The Edge Markets

Our Thoughts

Wall Street closed mixed, with the DJIA finishing at an all- time high. The Dow rose 62 points (0.16%) to end at 39,131. Meanwhile, profit takings were seen in Nasdaq as it ended 45 points (-0.28%) lower. In Asia, major indices closed largely higher, thanks to a strong inflow of global funds. Nonetheless, in Hong Kong, the HSI closed 0.1% lower due to profit-taking activities after it gained more than 10% since the benchmark hit a 14-month low in January. As for the local bourse, the FBM KLCI rebounded thanks to strong buying on YTL following its impressive 4QFY23 earnings. We reckon the market undertone will remain steady in the near term, supported by encouraging corporate results and an inflow of foreign funds, although profit takings may set in. As such, we anticipate the benchmark index to trend within the range of 1,545-1,555 for today. On the other hand, the CPO futures are currently on uptrend, hovering just below the RM4,000 per tonne level. Should the CPO futures break the RM4,000 per tonne, we reckon investors will take positions on the plantation sector.

Source: Rakuten Research - 26 Feb 2024

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