Previous Day Highlights

FBM KLCI closed higher by 0.68% or 10.96 pts to 1,623.9. Majority of sectors were positive with energy (+2.54%), healthcare (+1.78%), and industrial products (+1.76%), leading the gainers; while telcos (-0.05%) was the only loser. Market breadth was positive with 802 gainers against 324 losers. Total volume stood at 3.22bn shares valued at RM2.76bn.

Major regional indices trended higher. SHCOMP gained 0.07% to close at 2,879.43. Nikkei 225 jumped 3.64%, to finish at 38,062.67. STI rose 1.12%, to close at 3,352.89. HSI surged 1.88% to finish at 17,430.16.

Wall Street ended higher as sentiment was boosted by soft landing hopes. The DJIA gained 0.20%, to end at 40,659.76. Nasdaq added 0.21%, to close at 17,631.12. S&P500 rose 0.20% to finish at 5,554.25.

News For The Day

CelcomDigi 2Q net profit rises to RM406m

CelcomDigi’s 2QFY24 net profit rose 18.2% YoY to RM406m on the back of service revenue growth and realising merger synergies and benefits. The company declared a second interim dividend of 3.5 sen per share, amounting to RM411m, payable on Sept 30, 2024. -The Star

GuocoLand's 4Q net profit nearly triples

GuocoLand, the property arm of Hong Leong Group, reported near-threefold rise in its 4QFY6/24 net profit YoY to RM41.4m thanks to a one-off net gain of RM34.6m. On its outlook, GuocoLand said it expects the domestic property sector to be challenging due to high interest rates and escalating construction costs, which could squeeze its profit margins. - The Edge Markets

SFP Tech’s 2Q net profit up 21%

SFP Tech Holdings’ 2QFY24 net profit grew 21.22% YoY toRM12.9m, contributed mainly by its engineering supporting services (ESS) segment which saw higher orders. On its prospects, SFP Tech said its new wholly-owned unit in Singapore, SFP Integration, is expected to spearhead the group’s efforts to capture anticipated growth in the semiconductor wafer fabrication space, particularly within semiconductor equipment strategic business opportunities, which is its key focus area. -The Edge Markets

ITMAX bags RM539m DBKL contract

ITMax System has secured a RM539m contract from Kuala Lumpur City Hall (DBKL) to deploy its artificial intelligence (AI) enhanced video surveillance system throughout the city. Under this contract, ITMAX said it will install 5,000 closed circuit cameras to complement the existing video surveillance infrastructure in Kuala Lumpur, which will be equipped with advanced AI capabilities for real-time analytics, enhanced security monitoring and city management. -The Star

Vetece IPO oversubscribed by 187 times

Enterprise software firm Vetece Holdings has generated positive investor interest for its IPO, which has been oversubscribed by 187.41 times ahead of its listing on the ACE Market. Vetece mainly provides software for businesses, including implementation, maintenance, support and professional services as well as resale of hardware and software. The company’s clients are mostly in the telecommunications and financial services industries. - The Edge Markets

Our Thoughts

Wall Street’s comeback continues, on the back of a much stronger US retail sales and decline in weekly jobless claims. All 3 major indices ended positively with the DJIA adding 97 points while the Nasdaq rose by 37 points. With the cut in interest rate looking imminent in September, the US 10-year yield dipped to 3.883%. In Hong Kong, the HSI jumped to its weekly high on optimism that the PBOC has pledge of more incentives to bolster confidence. Meanwhile, strong earnings from JD.com have also spurred a tech rally within. Back home, the FBM KLCI closed on a weekly high supported by persistent buying from foreign funds. We believe the strengthening ringgit may also play a crucial role in attracting inflow of foreign funds thus expect the index to trend within the 1,620- 1,635 range today. It is pivotal that the index breaks the 1,630 mark decisively to resume its uptrend going forward. As for crude palm oil, prices have declined to almost the year’s low circa. RM3,700/tonne amidst the stronger ringgit.

Source: Rakuten Research - 19 Aug 2024

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