Previous Day Highlights

FBM KLCI closed marginally lower amid the on-going consolidation. However, the benchmark index slid 0.15% or 2.32 pts to close at 1,590.37. Majority of sectors were positive with construction (+0.7%), consumer (+0.4%), and plantation (+0.3%), leading the gains; while losers were seen in energy (-1.1%), and health care (-0.5%). Market breadth was mixed with 600 gainers against 586 losers while 477 were unchanged. Total volume stood at 5.83bn shares valued at RM6.06bn.

Major regional indices trended broadly lower except STI which up 0.18%, to close at 3,306.02. HSI slumped 1.67%, to end at 18,028.52. SHCOMP dropped 0.24%, to close at 2,998.14. Nikkei 225 eased 0.09%, to finish at 38,596.47.

Wall Street closed mostly lower from its recent record high, weighed down by chip stocks. The DJIA added 0.04%, to end at 39,150.33. Nasdaq slipped 0.18%, to close at 17,689.36. S&P500 eased 0.16%, to finish at 5,464.62.

News For The Day

IJM unit clinches two building projects worth RM962m

IJM Corp, through its wholly owned unit IJM Construction SB, has clinched two contracts totalling RM962.3m. The first contract, valued at RM584.3m and awarded by PNB-backed Strategic Sonata, involves constructing Plot A of a logistics hub in Section 15, Shah Alam. The project is expected to be completed within 28 months from the commencement date on June 20. Meanwhile, the second contract, worth RM378m, pertains to Phase 1 of a semiconductor manufacturing facility for Siliconware Precision Malaysia SB at Bandar Cassia Technology Park in Penang. -The Edge Markets

Scientex's 3Q net profit grows 19% to RM130.5m

Scientex’s 3QFY24 net profit rose 18.9% YoY to RM130.5m from RM109.8m as revenue grew 11% YoY to RM1.1bn from RM997.1m, driven by healthy contributions from its packaging and property segments. The company declared a single-tier interim dividend of 6c per share, payable on July 19. -The Edge Markets

Unisem acquires lands in Kinta, Perak for RM30.14m

Unisem (M) has proposed to acquire 38 plots of vacant land covering a total area of 1.88m square feet in in Kinta, Perak for RM30.14m cash. The acquisition is to facilitate expansion of its semiconductor packaging and test facilities.– The Star

Infomina get RM53.6m contract for tech support services

Infomina's subsidiary in Thailand has received an order for the provision of technology application and infrastructure operations, maintenance and support services valued at US$11.39m (RM53.6m). Infomina (Thailand) Co Ltd received the signed order from a bank in Thailand for the services for the period of June 1, 2024, to Dec 31, 2029.-The Star

Ann Joo, consortium partner bag RM297m job from Tenaga

Ann Joo through its unit, Ann Joo Metal SB, in consortium with PT Lumintu Insan Mandiri, have bagged a contract worth RM297.90m from Tenaga Nasional for the electrification of East Coast Rail Link feeder stations. The project is expected to be completed by May 31, 2026. -The Edge Markets

MyNews reports third consecutive profitable quarter

MyNews Holdings reported its 2QFY24 net profit to RM1.73m against a net loss of RM6.28m YoY, thanks to higher share of profit from its joint venture company and improved profit margin. Its 2QFY24 earnings came on the back of a 10.66% increase in revenue to RM192.77m from RM174.2m, driven by improved in-store sales. -The Edge Markets

Our Thoughts

Wall Street ended mixed last Friday with heavy profit- taking in Nvidia shares as analysts raised concerns about the sustainability of their strong valuation increases. The S&P 500 slipped 0.2%, while the Dow rose 1.4% for the week, marking its best weekly performance since May, driven by gains in McDonald's, Nike, and Amazon. Meanwhile, the Nasdaq Composite fell 32.23 points, or 0.2%. In Asia, major indices finished mostly lower due to profit-taking activities. In Hong Kong, the HSI fell 307 points to end just above the 18,000 mark. On the domestic front, the FBM KLCI pared gains and ended in negative territory due to late selling. Despite increasing volatility, we maintain a cautiously optimistic outlook for the local market. Nonetheless, our long-term perspective is positive, backed by attractive valuations, robust corporate earnings, increasing FDI, and improving economic conditions. As such, we expect bargain hunting to prevail and anticipate the benchmark index to trend within the range of 1,590-1,600 today.

Source: Rakuten Research - 24 Jun 2024

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