Previous Day Highlights

FBM KLCI closed lower as profit taking activities emerged ahead of Wesak Day holiday. The benchmark index was down 0.33% or 5.41 pts to close at 1,622.09. Majority of sectors were negative with plantation (-1.5%), health care (- 1.4%), and consumer (-0.8%) leading the losses; while gainers were seen in technology (+0.6%), and REIT (+0.5%). Market breadth was negative with 726 losers against 470 gainers. Total volume stood at 5.43bn shares valued at RM4.27bn.

Major regional markets closed mixed. HSI slipped 0.13%, to end at 19,195.60. SHCOMP closed flat at 3,158.54. Nikkei 225 fell by 0.85%, to finish at 38,617.10. Meanwhile, STI was closed for Wesak Day.

Wall Street slipped after investors digested Fed minutes indicating high rates to persists. DJIA dropped 0.51%, to end at 39,671.04. Nasdaq eased 0.18%, to close at 16,801.54. S&P500 lost 0.27%, to finish at 5,307.01.

News For The Day

Sunway's 1Q net profit up 22%

Sunway’s 1QFY12/24 jumped 21.6% YoY to RM172.23m from RM141.64m, driven mainly by stronger performance from the property development and healthcare segments. Quarterly revenue grew 12.28% YoY to RM1.42bn from RM1.26bn fuelled by higher sales and progress billings from new and ongoing local development projects. -The Edge Market

Hartalega returns to the black for 4QFY2024

Hartalega Holdings notched a turnaround in its final quarter, thanks partly to a provision reversal that also helped to bring the world’s second-largest glovemaker by volume back into the black for the year. Hartalega reported its 4QFY3/24 net profit totalled RM15.12m compared to a net loss of RM334.97m YoY. Revenue climbed 2.4% YoY to RM529.83m from RM517.55m thanks to higher average selling prices from currency movements.-The Edge Markets

Sime Darby Property's 1Q profit doubles on higher sales

Sime Darby Property reported that its 1QFY12/24 doubled to RM123.58m from RM60.67m YoY, as the property developer saw its quarterly revenue hit a record high on higher sales and successful project executions. Quarterly revenue rose 42.81% YoY to RM978.69m from RM685.33m. The Edge Markets

Kossan logs third straight quarter of profits

Kossan reported its 1QFY12/24 to RM31.45m compared to a net loss of RM24.25m YoY thanks to higher sales volume and lower natural gas prices. Quarterly revenue climbed 14.4% YoY to RM451.63m from RM394.71m. -The Edge Markets

Hibiscus' 3Q net profit climbs 42%

Hibiscus Petroleum’s 3QFY6/24 net profit climbed by 42.37% YoY to RM101.81m from RM71.51m, driven by strong oil and condensate prices of over US$90 (RM421.68) per barrel. Revenue jumped more than 15% YoY to RM603.5m from RM523.34m. The company declared a dividend of two sen per share, payable on July 19, raising the total dividend for 9MFY24 to six sen per share. -The Edge Markets

Lagenda Properties acquire land in Kedah for RM148.98m

Lagenda Properties will purchase three plots of freehold land in Kuala Muda, Kedah, for RM148.98m. Lagenda said its wholly- owned subsidiary, Blossom Eastland SB, has entered into a sale and purchase agreement (SPA) with Hock Lean Rubber Estate SB to acquire the plots of land totalling 346 hectares.- The Star

Our Thoughts

Wall Street retreated as the latest minutes from the Federal Reserve indicated persistent high inflation with no cuts in rates anytime soon. As a result, the DJIA lost 202 points while the Nasdaq declined 32 points as the US 10-year yield eased marginally to 4.426%. In Hong Kong, the HSI took a breather to close marginally lower as sentiment turned cautious ahead of some big tech corporate earnings namely Meituan and Lenovo. Back home, the FBM KLCI also retraced but maintained above the crucial 1,620 level ahead of Wesak Day break. Daily volume was still decent at around 5.8bn units and if this continues to improve, we are confident to see heightening participation especially from the retail segment. In view of the robust earnings report from Nvidia after market as reflected from the positive reaction in Nasdaq futures, we believe sentiment to stay resilient and expect buying activities within the SEA region to continue thus expect the benchmark index to hover between the 1,620-1,635 range today.

Source: Rakuten Research - 23 May 2024

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