Previous Day Highlights

FBM KLCI closed lower and ended at its intra-day low due to profit-taking activities. The benchmark index was down 0.85% or 13.21 pts to close at 1,545.59. All the sectors ended lower with utilities (-2.6%), construction (- 1.1%), and industrial products & services (-1.0%) leading the losses. Market breadth was negative with 780 losers against 311 gainers. Total volume stood at 4.78bn shares valued at RM3.3bn.

Major regional indices trended negatively amid the cautious sentiment ahead of US inflation data. HSI declined 1.51%, to end at 16,536.85. SHCOMP dropped 1.91%, to close at 2,957.85. Nikkei 225 eased 0.08%, to finish at 39,208.03. STI slid 0.58%, to close at 3,138.93.

Wall Street closed lower as investors await for the key inflation reading. The DJIA dropped 0.06%, to end at 38,949.02. Nasdaq eased 0.55%, to close at 15,947.74. S&P500 eased 0.17%, to finish at 5,069.76.

News For The Day

Maybank's 4Q net profit rises 8.3%, declares 31 sen dividend

Malayan Banking’s 4QFY12/23 net profit rose 8.3% YoY RM2.39bn compared with RM2.21bn, as strong gains at its insurance segment and non-interest income offset a decline in net interest income. Net interest income fell 9.4% YoY to RM3.18bn, while non-interest income was up 5.4% YoY at RM1.90bn. Maybank declared a full-cash second interim dividend of 31 sen per share, lifting full-year dividends to 60 sen per share, translating into a payout of 77.4%. -The Edge Markets

IJM posts 34% rise in 3Q profit

IJM Corp's 3QFY3/23 net profit rose 34.3% YoY to RM100.43m from RM74.79m on the back of higher revenue across all its business segments. Total revenue for the quarter was up 34% YoY at RM1.48bn from RM1.1bn. -The Edge Markets

Genting Plantations pays 13 sen dividend;4Q profit rises 13%

Genting Plantations' 4QFY12/23 net profit grew 13% YoY to RM63.19m from RM55.86m, as stronger fresh fruit bunches (FFB) production offset the impact from weaker palm product prices and lower sales at the group’s downstream manufacturing business. 4QFY23 Revenue up 1.2% YoY to RM800.46m from RM791.19m. The group declared a final dividend of four sen and a special dividend of nine sen, with an ex-date of March 14, raising its total payout for FY23 to 21 sen. -The Edge Markets

Farm Fresh posts higher 3Q net profit, jump in revenue

Farm Fresh posts its 3QFY3/24 net profit of RM20.44m, up 8.91% YoY from RM18.77m. The group's quarterly revenue jumped 30.5% YoY to RM211.62m, thanks to contribution by the hotel, restaurant and cafe (Horeca) distribution channel, higher sales volume coming from UHT products as well as contributions from Inside Scoop SB and Sin Wah Ice Cream SB. -The Star

Higher tax expense drags Ekovest into the red in 2Q

Higher tax expenses pushed Ekovest into the red in 2QFY6/24, posting a net loss of RM50.6m, compared with RM223,000 net profit YoY. Ekovest recorded tax expense of RM17.42m for the quarter, as losses incurred by certain subsidiaries. -The Edge Markets

Spritzer logs record FY23 earnings on better volume

Spritzer’s 4QFY12/23 net profit rose 17.27% YoY to RM13.21m from RM11.27m, driven by increase in bottled water sales volume and average selling prices, as well as reduction in cost of raw materials. Revenue rose 15% YoY to RM125m from RM108.7m attributed to robust demand, strong recovery in tourism activities and the hot weather environment.-The Edge Markets

Our Thoughts

Wall Street ended lower as traders were sidelined ahead of the personal consumption expenditure data that is due later today. As a result, the DJI Average closed 23 points lower while the Nasdaq declined by 88 points as the US 10-year yield dipped to 4.266%. Over in Hong Kong, the HSI lost 254 points, the worst in 4 weeks as traders decided to lock in profits. Nonetheless, Hong Kong developers received a boost following the lifting of curbs on property transactions. Back home, the FBM KLCI closed broadly lower as profit taking activities surfaced after recent uptrend amongst the blue chips. We find the selling a tad overdone as investors decided to lock in profits especially for the Utilities sector following recent strong performance. We reckon a swift rebound is required to maintain recent upbeat sentiment so to carry the index further. Therefore, we expect the index to possibly hover within the 1,545-1,555 today.

Source: Rakuten Research - 29 Feb 2024

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