Previous Day Highlights

18 November 2024 FBM KLCI closed lower due to the absence of buying catalysts. The benchmark index declined 0.51% or 8.24 pts to close at 1,592.44. Gainers were seen in property (+0.49%), financial services (+0.33%), and industrial products & services (+0.25%); while losers were seen in consumer (- 1.41%), technology (-1.28%), and plantation (-0.75%). Market breadth was negative with 577 losers against 389 gainers. Total volume stood at 2.71bn shares valued at RM2.65bn.

Major regional indices trended mixed. HSI declined 0.05%, to end at 19,426.34. SHCOMP dropped 1.45%, to close at 3,330.73. Nikkei 225 was up 0.28%, to finish at 38,642.91. STI rose 0.17%, to close at 3,744.70.

Wall Street closed lower as investors digested the new cabinet. The DJIA dropped 0.70%, to end at 43,444.99. Nasdaq eased 2.24%, to close at 18,680.12. S&P500 dipped 1.32%, to finish at 5,870.62. .

News For The Day

Kossan’s net profit dropped 28.2% in 3QFY24

Kossan Rubber Industries’ net profit dropped 28.15% to RM29.4m in its 3QFY24 dragged by higher raw material costs and unrealised foreign exchange losses. It declared a dividend payout of 8 sen per share to be paid on Dec 12, 2024. Looking ahead, Kossan expects brighter times ahead with glove demand expected to be redirected away from China, as US tariffs on Chinese imports are set to jump from the current 7.5% to 50% in 2025 and further to 100% in 2026. - The Edge Market

MSC’s net profit rise 20.9% in 3QFY24

Malaysia Smelting Corp’s net profit increase 20.9% YoY to RM14.3m driven by the 29% jump in revenue to RM470.1m thanks to increased sales of refined tin and higher average tin prices. This includes expanding its mining activities and mine resources, adopting new cost-effective mining methodology and participating in new mining joint ventures. MSC declared a second interim single-tier special dividend of 17 sen per share, payable on Dec 23, 2024. – The Star

Ge-Shen’s net profit surges 46% in 3QFY24

Ge-Shen Corp’s net profit rose 46% to RM3.1m driven by contributions from both existing manufacturing plants as well as from a newly acquired subsidiary in Kedah. The Group remains confident that our diverse product range will sustain our growth and profitability. It is expanding its manufacturing footprint across its subsidiaries in Malaysia and Vietnam to boost capacity and meet the rising demand in the medical devices sector. - The Edge Market

Meta Bright bags RM60m job to supply concrete in Sabah

Meta Bright Group secured a RM60m, five-year contract through its 70%-owned unit Expogaya to supply ready-mixed concrete for the 88 Avenue project in Kota Kinabalu, Sabah. The contract with Megamas Jaya highlights the group's focus on seizing growth opportunities and its commitment to resilience and sustainable development in Malaysia’s evolving construction landscape. - The Edge Market

Betamek's net profit up 84.5% in 2QFY25

Betamek’s net profit surged 84.5% to RM10.5m in the 2QFY25 mainly attributed to effective cost management and a one-off gain on consolidation of RM6.3m following the acquisition of Sanshin (Malaysia). Betamek declared a second interim dividend of 1.25 sen per ordinary share, payable on Dec 12, 2024. Looking ahead, the Group remains committed to delivering innovative in-vehicle infotainment solutions and electronic components. - New Straits Times

Our Thoughts

Wall Street closed lower as experts are warning that the Trump-inspired rally may have dried up following the Republicans control of both the House and Senate would backfire and that sentiment may also have turned dangerously bullish. Meanwhile, the US 10-year yield maintains its high level at 4.445% despite the recent 25bpscut. Over in Hong Kong, the HSI ended flat following a choppy session as the latest Chinese Retail sales of 4.8% and slower decline in home prices were insufficient to raise traders’ spirit. Back home, the FBM KLCI was surprisingly weak as it closed the week below the 1,600 mark signalling a potential long consolidation phase if it does not rebound immediately today. Therefore, we expect some bargain hunting activities to emerge and the index to trend within the 1,595-1,605 range today.

Source: Rakuten Research - 18 Nov 2024

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