Previous Day Highlights

FBM KLCI continued its upward trend, reaching YTD peak spurred by the persistent buying activities. The benchmark index was up 0.13% or 2.05 pts to 1,561.64. Majority of sectors were positive with health care (+1.5%), construction (+1.1%), and technology (+0.8%), leading the gains; while losers were seen in plantation (-0.4%), and energy (-0.3%). Market breadth was positive with 642 gainers against 402 losers. Total volume stood at 3.73bn shares valued at RM2.79bn.

Major regional indices trended mostly higher, except SHCOMP which dropped 0.74%, to close at 3,021.98. HSI gained 1.92%, to end at 16,828.93. Nikkei 225 was up 0.30%, to finish at 37,552.16. STI climbed 1.47%, to close at 3,272.72.

Wall Street closed higher driven by the megacap’s outlook after the earnings reports. The DJIA added 0.69%, to end at 38,503.69. Nasdaq rose 1.59%, to close at 15,696.64. S&P500 gained1.20%, to finish at 5,070.55.

News For The Day

PavREIT says PavKL, Elite's footfalls unaffected by TRX mall

While the opening of The Exchange TRX is anticipated to intensify competition in the malls sector, Pavilion Real Estate Investment Trust (PavREIT) said footfalls at its malls nearby, Pavillion KL and the connected Pavilion Elite remain unaffected, and they are still enjoying over 95% occupancy rates. Pavilion KL and the Pavilion Elite remained PavREIT's largest earnings contributors, accounting for about 77% and 10.3% respectively of its full FY23 net property income (NPI) of RM459.11m. -The Edge Markets

DXN’s 4Q net profit up 43%, seek to expand market presence

DXN Holdings posted a YoY 43.23% rise in its 4QFY2/24 net profit to RM79.02m from RM55.17m. Quarterly revenue grew 16.21% YoY to RM470.64m from RM405m, primarily attributed to increased revenue contributions from Latin America and India, bolstered by a combination of member-driven conventions and events, the launch of new products, and targeted marketing programmes. DXN declared a fourth interim dividend of one sen per share, payable on May 30, bringing its total dividend declared for FY24 to 3.6 sen per share. DXN aims to expand its market presence in Brazil in FY25.-The Edge Markets

Ramssol’s 1Q profit doubles as revenue surges

Ramssol Group reported its 1QFY12/24 near doubling YoY to RM4.17m from RM2.1m, due to certain projects with higher profit margin and the distributorship of HCM licences. Revenue jumped 123.48% YoY to RM14.42m from RM6.45m on higher sales in Malaysia and Thailand, particularly in HCM solutions and technology applications. -The Edge Markets

Haily gets RM109.5m residential construction job

Haily Group has accepted a letter of award worth RM109.5m from Mandy Corporation SB for the construction and completion of a residential project in Pontian, Johor. the contract will entail the construction of 332 units of double storey terrace houses and a double chamber Tenaga Nasional Bhd sub-station, aim to complete on April 1 2026. -The Star

Crest Builder bags RM486m condo job

Crest Builder Holdings has won a RM486m contract to build three blocks of condominiums in Mon't Kiara. The 42-month contract was awarded by Kiaramas Development SB to Crest Builder SB, a wholly-owned subsidiary of the group. The condominiums, together with a car park podium, will be built at Jalan Desa Kiara, Kuala Lumpur from May 2, 2024 to Nov 1, 2027. -The Star

Our Thoughts

Wall Street closed higher as confidence was buoyed by a spate of solid corporate earnings which many see as a precursor of those from the mega caps which will be reported over the next few days. As such, the DJI Average jumped 264 points while the Nasdaq added 245 points while the US 10-year yield eased to 4.607% due to a latest US manufacturing data which hit a 4-month low. Over in Hong Kong, the HSI gained to almost the 17,000 level as traders welcomed China’s latest reforms to boost the Hong Kong market coupled with optimism of corporate earnings from major tech companies. On the home front, the FBM KLCI closed on a positive note but off the day’s high attributed to late profit takings. The local benchmark index managed to test a YTD high but failed to sustain the uptrend. Buying was broad based and we believe the Construction, Finance and Telco sectors to be centre of buying interests today thus expect the index to hover within the 1,560-1,570 range.

Source: Rakuten Research - 24 Apr 2024

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