Previous Day Highlights

FBM KLCI closed higher as bargain hunting activities lifted the market. The benchmark index up 0.73% or 11.60 pts to close at 1,604.04. Majority of sectors were positive with industrial products & services (+1.2%), construction (+1.2%), and plantation (+1.0%), leading the gains; while losers were seen in technology (-0.7%), and transportation (-0.6%). Market breadth was negative with 529 losers against 484 gainers. Total volume stood at 2.96bn shares valued at RM2.23bn.

Major regional indices trended lower. HSI gained 0.77%, to end at 19,576.61. SHCOMP dropped 0.21%, to close at 3,323.85. Nikkei 225 eased 1.09%, to finish at 38,220.85. STI slid 0.31%, to close at 3,733.06.

Wall Street closed mixed as traders reassess rate-cut expectations. The DJIA slid 0.13%, to end at 43,389.60. Nasdaq up 0.60%, to close at 18,791.81. S&P500 rose 0.39%, to finish at 5,893.61.

News For The Day

Master Tec’s 3QFY24 net profit up 3.3% YoY

Master Tec Group’s net profit 3QFY24 grew 3.3% YoY to RM6.0m. Revenue for the quarter rose 20.3% QoQ to RM87.6m, driven by strong demand for low-voltage power cables and consistent growth in both domestic and export markets. Mastec Tec announced a second interim single-tier dividend of 18 sen per share FY24. The dividend will be paid on Dec 16 with an entitlement date set for Dec 3. - New Straits Time

Ajinomoto's 2QFY25 net profit jumps 77% YoY

Ajinomoto’s 2QFY25 net profit surged 77% YoY to RM18.3m, helped by stronger sales from both consumer business and industrial business segments, and lower raw material costs. The group believes recent improvement in the Malaysian economy is expected to boost consumer sentiment and is favourable to its product sales and distribution. - The Edge Market

TMC Life Sciences’s 1QFY25 net profit plunges 81% YoY

TMC Life Sciences’ 1QFY25 net profit plunged 80.6% YoY to RM2.9m, as the healthcare group posted a lower revenue while its staff costs and other operating expenses rose. Looking forward, TMC expects that the increased capacity at its Thomson Hospital Kota Damansara and the rebound of its fertility business will drive its growth. It is also focusing on diversifying the customer base including international market expansion. - The Edge Market

EA Technique bags 3 contracts worth RM63.9m

Marine transportation and offshore storage provider EA Technique (M)'s subsidiary, Libra Perfex Precision has secured three contract extensions with Petronas Floating LNG 1 (L) Ltd (PFLNG1) worth RM63.9m. These three contracts, each with a two-year term, commencing in November 2024, will further solidifying its revenue streams while highlighting its trusted operational capabilities and enduring partnership with PETRONAS. – New Straits Times

AWC bags RM48.6m facilities management contract

AWC has accepted a letter of award from the Putrajaya Federal Territories Department for facilities management and maintenance service at Menara Seri Wilayah, Putrajaya, worth RM48.6m. The integrated facilities management and engineering services company said the contract period shall be 60 months commencing from Dec 12, 2024. The contract is expected to contribute positively to the earnings of the AWC Group over the duration of the contract. - The Star

Our Thoughts

Wall Street closed on a mixed note as sentiment remains jittery over the Federal Reserve’s path on interest rates. Recently, Jerome Powell has cited that there is no hurry in adjusting interest rates amid prevailing solid economy and labour market. Meanwhile, the US 10-year yield eased to 4.414%. Over in Hong Kong, the HSI rebounded as Chinese regulator has urged Chinese companies with share price below their net value to perform better to boost value thus shifting interests towards the banks. Nonetheless, overall market sentiment on the Hong Kong market remains shaky following the below par stimulus package announced recently. Back home, the FBM KLCI managed to chart an impressive rebound although there is still a long way to go. We believe such bargain hunting activities to continue ahead of earnings report from the heavyweights this week. Thus, we expect the index to hover within the 1,600-1,610 range today.

Source: Rakuten Research - 19 Nov 2024

To sign up for an account: http://bit.ly/40BNqKI

[Youtube Tutorial] Account Opening & Enable Foreign Equity: http://bit.ly/3I5Jzxo