Previous Day Highlights

FBM KLCI closed lower mirroring the performance of its regional peers, as investors braced for the U.S. inflation data. The benchmark index was down 1.24% or 20.55 pts to close at 1,639.80. Majority of sectors were negative with energy (-2.8%), technology (-2.1%), and health care (- 1.7%) leading the losses; while gainers were seen in telecommunications (+0.0%), and utilities (+0.0%). Market breadth was negative with 825 losers against 283 gainers. Total volume stood at 2.96bn shares valued at RM3.33bn.

Major regional indices trended mostly lower. HSI declined 0.73%, to end at 17,108.71. SHCOMP dropped 0.82%, to close at 2,721.80. Nikkei 225 eased 1.49%, to finish at 35,619.77. STI rose 0.53%, to close at 3,531.17.

Wall Street closed higher as key inflation report cemented expectations that the U.S. Federal Reserve will implement for a rate cut. The DJIA added 0.31%, to end at 40,861.71. Nasdaq rose 2.17%, to close at 17,395.53. S&P500 rose 1.07%, to finish at 5,554.13.

News For The Day

Bermaz Auto's 1QFY4/25 net profit falls 30%

Bermaz Auto's 1QFY4/25 net profit falls 30% YoY to RM70.2m, dragged by lower sales amid competition. Bermaz Auto’s sales volume was impacted by the launching of several new and facelift models by other marque distributors. The group declared a first interim dividend of 3.5sen per share. – The Edge Markets Kerjaya Prospek gets RM292.8m construction contract Kerjaya Prospek had secured a RM292.8m contract for building works in Kuala Lumpur. The contract is expected to contribute to the earnings and net assets per share for the financial FY25 to FY27. Kerjaya Prospek has secured RM1.55bn in new contracts so far this year. – The Edge Markets

Alpha IVF expands to Shanghai

Alpha IVF subsidiary Alpha International (Shanghai) Medical Consulting has launched a new operation in Shanghai, China, to capitalise on the country's rapidly growing in-vitro fertilisation (IVF) market and expand the group's regional presence. The Shanghai office is projected to handle over 150 egg retrieval procedures annually, significantly increasing the number of Chinese patients and strengthening the group’s financial performance. - The Edge Markets

ICT Zone's 1HFY24 net profit more than doubles

ICT Zone Asia’s net profit for the 1HFY24 more than doubled YoY to RM4.4m, thanks to higher contributions from its technology financing and cloud solutions and services segments. ICT Zone declared a preference dividend of 2sen per irredeemable convertible preference share (ICPS). The group is confident of its growth trajectory, particularly in its technology financing segment, and that its unbilled order book in this segment stands at RM217.6m, to be delivered over the next 5 financial years. – The Edge Markets

EPMB places out 30% of its shares

EP Manufacturing (EPMB) is placing out shares representing 30% of its issued share capital, 15% each to its largest shareholder Mutual Concept and a subsidiary of Bermaz Auto to raise RM39.7m to part finance the construction of its manufacturing hub in Melaka. EPMB, which has secured two vehicle assembly agreements earlier this year, is planning a RM100m manufacturing hub for internal combustion engine (ICE) vehicles and electric vehicles (EVs). Upon completion, the first phase of the Melaka manufacturing hub will have an annual production capacity of 12,000 vehicles with two shifts daily. – The Edge Markets

Our Thoughts

Wall Street closed broadly higher after a choppy session following initial concerns that core CPI figure came in slightly higher than expected which dampened hopes of a 50bps rate cut next week. Notwithstanding this, the DJIA gained 125 points while the Nasdaq jumped 370 points as the US 10-year yield inched marginally higher at 3.661%. In Hong Kong, the HSI closed weaker but off the day’s low following some selling on energy stocks tagging the declines in crude oil prices. Traders were mostly sidelined while waiting for the US inflation data. On the home front, the FBM KLCI slumped to just below the 1,640 level amid regional weaknesses. Nonetheless, we were indeed surprised by the rate of the decline thus expect a swift rebound and expect the index to hover within the 1,640-1,650 range today. Meanwhile, crude oil prices rebounded after a 1-week downtrend with the Brent crude currently trending just above the USD70/barrel.

Source: Rakuten Research - 12 Sep 2024

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