Previous Day Highlights

FBM KLCI closed slightly higher, as market undertone remained solid. The benchmark index was up 0.19% or 2.97 pts to close at 1,605.88. Majority of sectors were positive with utilities (+1.3%), energy (+0.8%), and construction (+0.7%), leading the gains; while losers were seen in health care (-0.7%), and telecommunications (-0.5%). Market breadth was positive with 600 gainers against 516 losers. Total volume stood at 4.7bn shares valued at RM3.21bn.

Major regional indices trended mixed amid the cautious sentiment. HSI declined 0.22%, to end at 19,073.71. SHCOMP slipped 0.07%, to close at 3,145.77. Nikkei 225 climbed 0.46%, to finish at 38,356.06. STI rose 0.29%, to close at 3,313.35.

Wall Street closed higher after investors digested mixed US producer prices data and Fed’s dovish comment. The DJIA added 0.32%, to end at 39,558.11. Nasdaq rose 0.75%, to close at 16,511.18. S&P500 rose 0.48%, to finish at 5,246.68.

News For The Day

Heineken Malaysia's 1Q net profit 11% higher on CNY sales

Heineken Malaysia's 1QFY24 net profit rose 11.42% YoY to RM122.48m from RM109.93m, driven by higher beer sales during the Chinese New Year and cost management. Revenue for the quarter increased by 6.61% YoY to RM789.17m from RM740.22m. Managing director Roland Bala commented on the group 1Q earnings attributed to its marketing investments, particularly the 'Cheers to a Bolder Tomorrow' Chinese New Year Campaign led by Tiger Beer, which had been instrumental in driving its top-line growth.-The Edge Markets

Taliworks posted 49% jump in 1Q earnings

Taliworks Corp 1QFY12/24 net profit jumped 49.4% YoY to RM15.03m against RM10.06m, amid an increase in the bulk water supply rate for its water treatment and supply division, and a higher share of results from jointly controlled entity Grand Sepadu (NK) SB, on the back of a toll compensation by the government. Quarterly revenue remained flat at RM93.33m, compared with RM93.53m YoY. The group declared a first interim dividend of one sen per share amounting to RM20.16m, to be paid on June 28. -The Edge Markets

Teo Seng 1Q net profit up 42% on higher egg sales

Teo Seng Capital 1QFY24 net profit rose 42.11% to RM34m from RM19.68m, on higher egg sales, improved raw material costs, and government subsidies that eased operational expenses. Quarterly revenue rose 3.6% YoY to RM190.1m from RM183.4m, mainly driven by improved revenue from the poultry farming segment. Teo Seng declared a first interim dividend of 2.5 sen per share, up half a sen from the same quarter last year, payable on June 3.-The Edge Markets

Uzma bags three years contract from ExxonMobil

Uzma has received a letter of award from ExxonMobil Exploration and Production Malaysia Inc (EMEPMI) for non-rig assisted, electric wireline logging equipment and services in West Malaysian waters. It added that the duration of the contract is for a period of three years commencing from May 3, 2024 until May 2, 2027.-The Star

BCB buys land in Batu Pahat, Johor for RM83.71m

BCB is acquiring 59 parcels of freehold land in Batu Pahat, Johor from Lian Hup Seng SB for RM83.71m. The proposed development on this new land will consist of a mixed-use project. It is forecasted that this development will yield an estimated gross development value (GDV) of RM1.1bn upon full completion. BCB said the acquisition will add approximately 286 acres to its existing land bank. -The Star

Our Thoughts

Wall Street closed on a positive note despite the higher than expected April’s producer price index data as traders prefer to focus on the upcoming CPI due out later today. As Over in Hong Kong, the HSI such, the DJIA added 127 points while the Nasdaq jumped by 123 points as the US 10-year yield eased to 4.445%. Over in Hong Kong, the HSI ended marginally lower as the index took a breather after a month-long rally that saw the index gaining more than 2,800 points or 17.6%. Meanwhile, traders are also looking out for earnings from both Alibaba and Tencent today. On the home front, the FBM KLCI maintained its tenacity at stay above the 1,600 mark underpinned by persistent accumulation of blue chips. For today, we believe trading participation to be similar as yesterday while waiting for the crucial CPI data from the US. Therefore, we expect the index to hover between the 1,600-1,610 range again. Meanwhile, crude oil prices have hit a soft patch with the Brent crude now trending at USD82/barrel attributed to build up in US inventory.

Source: Rakuten Research - 15 May 2024

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