Previous Day Highlights

FBM KLCI closed lower due to lack of buying catalysts. The benchmark index declined 0.36% or 5.92 pts to close at 1,635.74. Losers were the Property (-1.68%), healthcare (-1.30%), and construction (-1.05%) sectors; gainers were seen in energy (+0.10%) and plantation (- 0.01%). Market breadth was negative with 888 losers against 255 gainers. Total volume stood at 3.53bn shares valued at RM2.80bn.

Major regional indices trended mostly higher. SHCOMP gained 0.20%, to close at 2,854.37. Nikkei 225 rose 0.4%, to finish at 38,364.27. STI added 0.43%, to close at 3,387.99. HSI eased 0.16%, to end at 17,612.10.

Wall Street finished higher on rate cut hope. The DJIA gained 1.14%, to end at 41,175.08. Nasdaq rose 1.47%, to close at 17,877.79. S&P500 added 1.15%, to finish at 5,620.850.

News For The Day

Allianz's net profit rises to RM167m in 2Q24

Allianz Malaysia posted its 2QFY24 net profit of RM167m compared to RM166.7m YoY. CEO Sean Wang attributed the company’s performance to its astute planning over the years, which resulted in its steady growth. The group expects to continue this growth momentum in 2H2024 in line with the positive development in the nation’s economy. - The Star

SP Toto’s 4Q net profit rises 8.4%, declares two sen dividend

SPTOTO posted a 4QFY6/24 net profit of RM67.6m, up 8.4% YoY driven by a stronger performance of its principal subsidiary, STM Lottery SB. The company proposed a 4th interim dividend of 2sen per share, down from 2.5sen a year earlier, payable on Oct 18. This brings total dividends for FY6/24 to 10sen, up from 9sen YoY. -The Edge Markets

REDtone becomes substantial shareholder in HeiTech Padu

REDtone Digital has emerged as a substantial shareholder in HeiTech Padu after acquiring a 6.38% equity stake comprising of 7.1m shares in the open market for RM15.4m or at an average price of RM2.16 per share between June 27 and Aug 23, 2024. HeiTech Padu is principally engaged in providing system integration, network-related services, data centre management, disaster recovery services, and other information technology-related services primarily in Malaysia. - The Edge Markets

KIP REIT acquires land in Gerik for RM14.8m

KIP REIT which primarily invests in retail properties, is acquiring a 4,663-sq metre (100,416 sq feet) parcel of land in Gerik, Perak, for RM14.8m cash. This marks the trust's third acquisition this year, after KIPMall Kota Warisan in Sepang and D’Pulze Shopping Centre in Cyberjaya. KIP REIT said this acquisition will expand its portfolio to 12 assets, including seven KIPMalls, AEON Mall Kinta City and three industrial properties in Pulau Indah, Klang. Its net lettable area will increase from 2.1m to 2.2m sq ft. - The Edge Markets

Jati Tinggi secures RM39.9m contract

Infrastructure and engineering solutions provider Jati Tinggi Group has secured a contract to install 33kV aluminium cross- linked polyethylene (XLPE) underground cables and accessories for asset development in Selangor worth RM39.9m. The contract is effective from the date of acceptance and is expected to be completed within 660 days from the acceptance date. -The Edge Markets

Our Thoughts

Wall Street closed positively as the Federal Reserve chair Jerome Powell indicated that there will be a shift in rates policy going forward. As a result, the DJIA gained 462 points while the Nasdaq jumped 258 points with the US 10-year yield easing to 3.795%. Over in Hong Kong, the HSI dipped slightly affected by disappointing earnings from Chinese blue chips while traders are also keenly waiting for the statement from the Fed. Back home, the FBM KLCI declined to below the 1,640 level due to the absence of buyers ahead of the weekend. Daily volume traded remains low at 3bn shares as many traders were sidelined. Nonetheless, we believe buying should resume taking the positive cue from Wall Street coupled with the dovish statement from the Fed. Therefore, we expect the index to hover within the 1,635-1,645 range today. Recent news that AWS (Amazon Web Services) will invest USD6.2bn in Malaysia should add further impetus to the already burgeoning Tech sector as we anticipate the floodgate to remains open.

Source: Rakuten Research - 26 Aug 2024

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