Previous Day Highlights

FBM KLCI closed higher, driven by buying interest in blue-chip stocks. The benchmark index up 0.39% or 6.34 pts to close at 1,641.66. Gainers were seen in plantation (+1.26%), telecommunications (+0.70%), and industrial products & services (+0.63%); while losers were seen in energy (-1.61%), transportation (-1.27%), and financial services (-0.37%). Market breadth was negative with 615 losers against 446 gainers. Total volume stood at 3.72bn shares valued at RM3.09bn.

Major regional indices trended mixed. HSI surged 1.44%, to end at 17,641.00. SHCOMP dropped 0.27%, to close at 2,848.77. Nikkei 225 up 0.68%, to finish at 38,211.01. STI slid 0.01%, to close at 3,373.58.

Wall Street closed lower. The DJIA dropped 0.43%, to end at 40,712.78. Nasdaq slumped 1.67%, to close at 17,619.35. S&P500 fell 0.89%, to finish at 5,570.64.

News For The Day

Sime Darby Property 2Q net profit more than doubles

Sime Darby Property’s 2QFY24 net profit more than doubled YoY to RM162m driven by land sales and higher sales of industrial and high- rise homes. It has launched properties worth RM2.3bn in GDV, which is 59% of the full-year target of RM3.9bn. The company also declared the first dividend of 1.5 sen per share for FY24, payable on Nov 6, FY24. -The Edge Markets

Greatech's 2Q net profit up 26%

Greatech Technology 2QFY24 net profit jumped 26.3% YoY to RM48.4m, as it seeks to continue to focus on cost-optimisation measures aimed at improving profitability and ensuring that ongoing projects are completed on schedule. Looking ahead, the company said its strategy includes expanding its customer base and focusing on process innovation to drive growth. -The Edge Markets

Kossan remains positive on long-term glove demand

Kossan Rubber Industries posted a 2QFY24 net profit of RM31.3m as compared to a net loss of RM3.3m YoY. The company noted that the industry consolidation and capacity adjustments by key domestic players, along with the exit of new entrants in the pandemic period, have collectively helped to alleviate the oversupply situation. -The Edge Markets

Dayang upholds strong earnings with RM1.39bn contracts

Dayang Enterprise 's earnings outlook for FY24 remains robust, supported by about RM1.39bn in outstanding call-out contracts. Dayang’s 2QFY24 net profit more than doubled YoY to RM131.4m attributable to higher vessel utilisation rates of 91%. Dayang confident that it can sustain a similar performance in 3QFY24 given the overall industry optimism supported by stable crude oil prices. - The Star

Magnum's 2Q net profit up 4%

Magnum’s 2QFY24 net profit increase 4.1% YoY to RM45.4m mainly due to a marginal loss recorded by its investment holdings and others division, as a result of higher operating expenses and lower fair value gain. The group declared an unchanged dividend of 2 sen per share. The stock’s indicative dividend yield is 4.8%. In terms of prospects, the group said it is optimistic that the performance of the gaming business will remain positive in 2HFY24. - The Edge Markets

Our Thoughts

Wall Street retreated as traders were mostly sidelined ahead of the Federal Reserve’s meeting at Jackson Hole starting later today. Meanwhile, sentiment was also affected by the adjustments of jobs creation in April lower by 818k indicating that the US job market may not be as robust. As such, the DJIA lost 178 points while the Nasdaq declined by 300 points with the US 10-year yield edging higher at 3.858%. In Hong Kong, the HSI rebounded to above the 17,600 level led by stellar earnings from Xiaomi, AIA and JD.com. Sentiment was also bolstered by the clear cut rate adjustments in the US next month. Back home, the FBM KLCI closed on a strong note as buying from foreign funds continues. The local bourse has had a decent run this week despite some intermittent profit taking activities. Nonetheless, average volume traded remains low as retail participation is absent as many are opting for the numerous IPOs of late which have drawn out some liquidity from the secondary market. For today, we expect the index to trend within the 1,640-1,650 range ahead of a crucial weekend in the US.

Source: Rakuten Research - 23 Aug 2024

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