Previous Day Highlights

FBM KLCI closed higher due to lack of buying interest. The benchmark index up 0.06% or 0.88 pts to close at 1,538.42. Majority of sectors were positive with REIT (+0.3%), construction (+0.7%), and technology (+0.2%), leading the gains; while losers were seen in energy (-0.1%), and consumer (0.0%). Market breadth was negative with 587 losers against 476 gainers. Total volume stood at 3.76bn shares valued at RM2.56bn.

Major regional indices trended mixed. HSI gained 0.88%, to end at 16,618.32. SHCOMP increased 0.17%, to close at 3,031.48. Nikkei 225 eased 0.04%, to finish at 40,398.03. STI rose 1.10%, to close at 3,233.33.

Wall Street closed lower due to NEWS. The DJIA dropped 0.08%, to end at 39,282.33. Nasdaq eased 0.42%, to close at 16,315.70. S&P500 slipped 0.28%, to finish at 5,203.58.

News For The Day

Scientex's net profit rises to RM141.01m in 2Q

Scientex reported a higher bottomline of RM141.01m in 2QF7/Y24, up from RM106.3m YoY. The group reported revenue of RM1.09b, up from RM978.4m YoY on the back of improved contribution from the property segment. CEO Lim Peng Jin said the group is focusing on the packaging division’s core for driving sustainable growth and are optimistic of sustaining the division’s performance. -The Star

Keyfield International begins taking orders for IPO

Oil and gas (O&G) services firm Keyfield International began taking orders from investors for its initial public offering (IPO) that would raise up to RM188.1m. The IPO is priced at 90 sen apiece and comprises entirely of new shares, according to its prospectus. Applications for the IPO will close on April 3 and listing has been scheduled for April 22. -The Edge Markets

Marine & General unit to dispose of vessel for RM26m

Marine & General has disposed of a vessel, JM Sutera 5, to Kalianda Permata Transport Pte Ltd, Singapore, for US$5.5m (RM26.2m) cash. The company plans to use the proceeds to reinvest in new chemical tankers for the renewal of its vessel fleet. -The Star

Kelington starts production at second LCO2 plant

Kelington Group's 90.71%-owned subsidiary Ace Gases SB has commenced liquid carbon dioxide production at the group's second LCO2 plant in Kerteh, Terengganu. The start of production at the plant, which has a capacity of 70,000 tonnes per year, brings the group's overall production capacity of LCO2 to 120,000 tonnes a year. CEO Raymond Gan said the second LCO2 plant positions the group for further revenue growth at its industrial gas segment as it now has the capacity to effectively meet rising demand. - The Edge Markets

SSF returns to profit in 3QFY4/24, declares half sen dividend

SSF Home Group announced its maiden dividend of half a sen per share or RM4m, as the group registered a net profit of RM2m in 3QFY4/24 on better revenue. The latest quarter pushed SSF back to profit for 9MFY4/24 with a bottom line of RM1m. The group opened two retail outlets in the Southern region and one retail outlet in the Northern region respectively in the fourth quarter of last year. - The Edge Markets

Our Thoughts

Wall Street finished lower as profit takings continued following the strong rally recently. Investors have turned cautious ahead of this week’s inflation data. As such, the DJI Average lost 0.08% points while the Nasdaq closed 0.42% points lower. Meanwhile in Hong Kong, stocks ended higher with buying on property sector. The HSI gained 0.88% to end at 16,618.32. On the domestic front, the FBM KLCI narrowly higher after a choppy session as investors are reluctant to take long position amid the strong global volatility. Nonetheless, accumulation persists on small caps such as property and construction sectors. We believe the benchmark index will remain in consolidation mode for the time being and expect it to trend within the 1,535-1,545 range for today.

Source: Rakuten Research - 27 Mar 2024

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