Previous Day Highlights

FBM KLCI closed slightly lower attributed to late selling activities. The benchmark index dipped 0.27% or 4.28 pts to close at 1,585.38. Majority of sectors finished negatively with utilities (-1.4%), property (-1.2%), and industrial products & services (-1.2%) leading the losses; while gainers were seen in healthcare (+0.2%), and energy (+0.1%). Market breadth was negative with 838 losers against 316 gainers. Total volume stood at 5.23bn shares valued at RM3.7bn.

Key regional indices trended mixed ahead of US inflation data. HSI gained 0.25%, to end at 18,072.90. SHCOMP dropped 0.44%, to close at 2,950.00. Nikkei 225 mounted 0.95%, to finish at 39,173.15. STI rose 0.37%, to close at 3,326.28.

Wall Street closed on a mixed note amid uncertainty over the interest rate outlook, but buoyed by the chip maker Nvidia. The DJIA dropped 0.76%, to end at 39,112.16. Nasdaq climbed 1.26%, to close at 17,717.65. S&P500 up 0.39%, to finish at 5,469.30.

News For The Day

Gamuda's 3Q profit rises 6% to RM235.8m

Gamuda’s 3QFY7/24 net profit rose 5.5% YoY to RM235.8m from RM223.37m, as it registered higher contributions from overseas projects. Quarterly revenue grew 20.46% YoY to RM2.49bn from RM2.07bn, driven by wholly-owned Gamuda Engineering SB, fuelled by its Australian projects. The group announced a second interim dividend of 10 sen per share, to be paid on a date to be disclosed, bringing the YTD dividend for FY24 to 16 sen per share. -The Edge Markets

Astro posts 7% rise in 1QFY25 net profit

Astro Malaysia Holdings’ 1QFY1/25 net profit increased by 7% YoY to RM17.01m from RM15.9m, due to lower net financing costs. However, the company's revenue saw a decline of 9.8% YoY to RM772.53m from RM856.94m, attributed to lower subscription and advertising revenues. -The Edge Markets

Prolintas confirms personnel remanded by MACC

The CEO of a highway concessionaire in the Klang Valley and seven others have been arrested for alleged bribery in connection with two highway projects worth RM1.67bn, said MACC sources. Projek Lintasan Kota Holdings SB (Prolintas) said it is "aware that our personnel have been remanded by MACC to assist in an ongoing investigation relating to a construction case". -The Edge Markets

Kenanga IB gets nod to raise stake in Merchantrade

Kenanga Investment Bank has received approval from Bank Negara Malaysia to raise its stake by 15.2% in Merchantrade Asia SB, the country’s largest money services business operator. Upon completion of the acquisition, Kenanga’s aggregated equity holding in Merchantrade will increase to 19.94% from 4.74%. -The Edge Markets

TRC Synergy bags RM125m contract from BHIC

TRC Synergy has secured a contract worth RM125m from BHIC Submarine Engineering Services SB to conduct schedule and corrective maintenance work at the Royal Malaysian Navy Submarine Base, Sapangar Bay, Kota Kinabalu. TRC said the project shall be for a period of 60 months.-The Star

Ramssol acquires 51% stake in Geekstart for RM6.9m

Ramssol Group is acquiring a 51% stake in Bangkok-based Geekstart Company Ltd for RM6.9m to expand its digital capabilities across Southeast Asia. The acquisition exercise comes with a profit guarantee of about RM4.7m for FY24 and not less than RM7.05m for FY25. The acquisition is expected to be completed by next month.-The Star

Our Thoughts

Wall Street closed mixed again on Tuesday following a cautious session, as investors awaited crucial U.S. data, including a report on consumer income and spending, for more insight into the Federal Reserve's interest rate outlook. Nvidia stock rebounded on Tuesday following a multi-day decline, boosting the tech-heavy Nasdaq, which increased by 1.3%. The S&P 500 closed 0.4% higher as well while the Dow eased 0.8% mainly due to selling on consumer stocks. Regionally, key indices finished mostly higher due to bargain hunting activities. Hong Kong stocks recovered stability, raising the HSI by 0.25% following three days of significant losses, as Mainland Chinese and European ministers initiated dialogue on tariffs for Chinese electric vehicles. As for the local bourse, The FBM KLCI trended downward as investor sentiment remained cautious due to a lack of buying catalysts. Despite this, we believe the sell-off offers an opportunity for investors to find bargains in lower-priced stocks. However, we exercise caution due to increasing market volatility and expect the benchmark index to consolidate until more clarity emerges. Therefore, we anticipate the benchmark index to range between 1,580 and 1,590 today.

Source: Rakuten Research - 26 Jun 2024

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