Previous Day Highlights

FBM KLCI closed marginally lower predominantly from the lack of fresh catalysts. The benchmark index was down 0.15% or 2.45 pts to close at 1,615.82. Majority of sectors were negative with utilities (-1.7%), telecommunications (- 1.2%), and technology (-1.0%) leading the losses; while gainers were seen in consumer (+0.1%), and financial services (+0.1%). Market breadth was negative with 824 losers against 352 gainers. Total volume stood at 4.87bn shares valued at RM3.8bn.

Major regional indices trended broadly lower except STI which advanced 0.35%, to close at 3,330.09. HSI close flat at 18,821.16. SHCOMP dropped 0.46%, to close at 3,109.57. Nikkei 225 eased 0.11%, to finish at 38,855.37.

Wall Street closed mixed, but AI rally continue to boost mega tech stocks. The DJIA slipped 0.55%, to end at 38,852.86. Nasdaq grew 0.59%, to close at 17,019.88. S&P500 close flattish at 5,306.04.

News For The Day

CelcomDigi's 1Q net profit rises 18% on provision writeback

CelcomDigi reported its 1QFY12/24 net profit rose 18% YoY to RM376.46m against RM317.92m, thanks to a writeback on provisions. Quarterly revenue slipped 0.8% YoY to RM3.15bn from RM3.18bn, as lower interconnect rate, reduced bulk messaging traffic and softer usages dragged on service revenue, despite an enlarged subscriber base. The company declared a first interim dividend of 3.5 sen per share for FY2024, payable on June 28. -The Edge Markets

YTL Power unit SIPP buys 31.4% stake in Ranhill

YTL Power International 70% subsidiary SIPP Power SB is buying 31.42% stake, in Ranhill Utilities for RM405.18m. SIPP Power, together with YTL Power, will collectively own a 53.19% stake in Ranhill. SIPP Power is obliged to make a mandatory general offer at 99.5 sen per share to buy out all the Ranhill shares it does not already own. -The Edge Markets

MPHB Capital gets privatisation offer at RM1.70 per share

MPHB Capital controlling shareholder and chairman Tan Sri Surin Upatkoon plans to take the credit services provider private through a selective capital reduction totalling RM748.11m. Entitled shareholders will receive RM1.70 per share under the capital repayment proposed by Upatkoon and his family, who together control 43% of MPHB. -The Edge Markets

E&O's full-year net profit tripled to RM133.6m

Eastern & Oriental FY3/24 net profit tripled to RM133.61m from RM44.54m, on the back of higher revenue from its properties segment. Full year revenue rose to RM422.83m from RM318.07m. Its 4QFY3/24 net profit more than doubled to RM36.48m from RM16.09m. Quarterly revenue jumped 85.8% YoY to RM121.33m compared to RM65.30m. -The Edge Markets

Southern Cable 1Q24 net profit doubled to RM14.1m

Southern Cable reported its 1QFY12/24 net profit more than doubled YoY to RM14.1m, versus RM5.1m. Quarterly revenue surged 29.5% YoY to RM312m from RM240.9m, on increased demand for power cables and wires and higher average selling prices. The improved margins due to lower raw material costs and better product mix. -The Star

Ageson gets RM54.33m apartment job

Ageson has accepted a letter of award from R&C Cergas Teguh SB (RCCT) to carry out the sub-contract works for a 40-storey service suite at Jalan Terowong Sepanggar, Sabah, worth RM54.33m. The sub-contract period shall be 36 months from the commencement date. -The Star

Our Thoughts

Wall Street closed on a mixed note despite the Nasdaq hitting a record high above the 17,000 level. Overall sentiment was cautious affected by the lacklustre demand of US Treasury auction that saw higher yields in the process. As a result, the DJIA lost 217 points while the Nasdaq gained 99 points as the US 10-year yield edged higher at 4.548%. Over in Hong Kong, the HSI ended flat after a strong morning session as profit taking activities emerged. Nonetheless, the overall mood on the market is improving after Shanghai announced the easing of restrictions for property purchases. On the home front, the FBM KLCI failed to maintain above the 1,620 mark after a positive opening as sellers came out in force amid a rather weak regional performance. Though this is deemed a healthy market correction, we believe the index needs to re-test the 1,620 level as soon as possible before the ongoing consolidation is prolonged. Therefore, we expect the index to trend between the 1,615-1,625 range today.

Source: Rakuten Research - 29 May 2024

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