Previous Day Highlights

25 March 2024 FBM KLCI ended in positive territory despite the regional weaknesses. The benchmark index was up 0.06% or 0.98 pts to close at 1,542.39. Majority of sectors were positive with property (+1.2%), technology (+0.7%), and construction (+0.3%), leading the gains; while losers were seen in plantation (-0.2%), and industrial products & services (-0.2%). Market breadth was mixed with 544 losers against 538 gainers while 475 were unchanged. Total volume stood at 5.09bn shares valued at RM2.69bn.

Major regional indices trended mostly lower as sentiment remain fragile amid weak earnings amongst the Chinese companies. HSI declined 2.16%, to end at 16,499.47. SHCOMP dropped 0.95%, to close at 3,048.03. Nikkei 225 was up 2.21%, to finish at 40,888.43. STI slid 0.07%, to close at 3,217.97.

Wall Street closed mixed after investors digested the prospect of a rate cut and a mixed bag of corporate earnings. The DJIA dropped 0.77%, to end at 39,475.90. Nasdaq rose 0.16%, to close at 16,428.82. S&P500 eased 0.14%, to finish at 5,234.18.

News For The Day

Yinson posts 63% jump in net profit to RM964m for FY24

Yinson Holdings' FY24 net profit jumped 63% to RM964m from RM589m YoY, on the back of a surge in revenue to RM11.65bn versus RM6.32bn. Its 4QFY1/24 net profit rose 62.5% YoY to RM278m from RM171m, mainly due to the effect of charter day rate escalation. Revenue for the quarter increased to RM2.70bn from RM1.96bn YoY. Yinson declared a dividend of 1 sen for the quarter, taking full-year dividends to 2 sen.-The Edge Markets

Velesto receives contract extension worth US$265m

Velesto Energy’s wholly-owned subsidiary, Velesto Drilling SB has received Notice of Assignments (NOAs) for its NAGA 2, NAGA 4 and NAGA 6 premium independent-leg cantilever jack-up rigs from Petronas Carigali SB. The NOAs are for two years until Feb 6, 2026, inclusive of the continuation of the current drilling campaign as per NOA dated Jan 11, 2024, March 7, 2023, and June 2, 2023, for a total contract value of US$73.04m, US$94.88m and US$97.08m, respectively.- The Star

NTPM registers turnaround in 3Q on higher sales

NTPM Holdings reported turnaround in its 3QFY4/24 net profit at RM6.3m compared to a net loss of RM7.32m YoY, on the back of higher sales and decreased materials cost. Quarterly revenue rose 11.75% YoY to RM241.06m from RM215.72m.- The Edge Markets

Astino sees fourfold jump in 2Q profit on stronger sales

Flat steel product manufacturer Astino reported a fourfold surge in its 2QFY7/24 net profit to RM11.78m from RM2.95m, on stronger sales and profit margin. Its quarter revenue grew 18% YoY to RM169.22m from RM143.29m. -The Edge Markets

Nestcon wins RM79.5m contract in Johor

Nestcon Bhd’s wholly-owned subsidiary, Nestcon Infra SB has secured a RM79.5m contract from Iskandar Capital SB. The contract was for proposed earthworks and main infrastructure works for the Wawari Phase 1 Township Development in Pulai, Johor. The possession date would be March 28, 2024, and the overall completion date would be Nov 27, 2025. -The Star

Superlon posts big jump in 3Q profit on higher sales

Thermal insulation materials manufacturer Superlon Holdings reported its 3QFY4/24 net profit of RM3.92m, over six times the RM619,000 YoY, driven by stronger sales in the manufacturing segment. Its 3QFY4/24 revenue came in at RM30.45m, up RM18.71% YoY from RM25.65m. Superlon announced a third interim dividend of 1.25 sen per share, to be paid on April 26.-The Edge Markets

Our Thoughts

Wall Street closed mixed amid the uncertainties over interest rates despite dovish comments by the Federal Reserve on interest rates during the recent FOMC meeting. Therefore, despite the DJI Average losing 305 points, the Nasdaq was up 27 points with the US 10-year yield easing to 4.202%. Over in Hong Kong, the HSI declined by 191 points over concerns of corporate earnings and latest moves by US lawmakers to restrict US funds MinvaejosrtirneggiionncaelritnadiniceCshitnreensedeedntmitiixeesd. BaaftcekrhCohminea,'sthneewFBgMrowKLtChI tmaragneatgsedantonoeunndcemmaerngti.nalHlySIhigdheecrlinmedain2ly.6a1t%tr,ibutotedetnod laatte 1b6u,y1i6n2g.6in4.BaSnHkCinOgMsPtocinkcsr.eTahsoeudgh0.2se8n%t,imteontclroesme aaints3c,a0u4t7i.o7u9s., Nthikekaevie2r2a5gecldoasielydvfolaluttmisehsautrp4a0s,0se9d7.t6h3e. 5SbTnI sslhidar0e.4s8le%v,etl,omcaloinsley adtu3e,1to07st.1ro0n. g accumulation in counters within the Construction and Property sectors. Taking cue from the uncertainty on Wall WStraelletS,twreeetbecllioesveedtrsahdainrpglyonlothweerlocaasl pbrooufritsetatokinbge satcutcivkitiniesa etimghetrgraendgfeololofwbeintgwteheenr1e,c5e3n5t-1ra,5ll4y5. TthoedaDyJ.IA dropped 1.04%, to end at 38,585.19. Nasdaq eased 1.65%, to close at 15,939.59. S&P500 eased 1.02%, to finish at 5,078.65.

Source: Rakuten Research - 25 Mar 2024

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