Previous Day Highlights

FBM KLCI closed lower due to weak sentiment. The benchmark index was down 0.26% or 4.16 pts to close at 1,598.18. Gainers were seen in construction (+0.92%), health care (+0.88%), and telecommunications (+0.52%); while losers were seen in utilities (-0.65%), financial services (- 0.53%), and property (-0.46%). Market breadth was negative with 546 losers against 457 gainers. Total volume stood at 2.72bn shares valued at RM2.44bn.

Major regional indices trended mixed. HSI gained 0.21%, to end at 19,705.01. SHCOMP increased 0.66%, to close at 3,367.99. Nikkei 225 eased 0.16%, to finish at 38,352.34. STI slid 0.18%, to close at 3,751.06.

Wall Street ended mixed as investors awaited Nvidia's earnings report. The DJIA was up 0.32%, to end at 43,408.47. Nasdaq slid 0.11%, to close at 18,966.14. S&P500 rose 0.00%, to finish at 5,917.12. .

News For The Day

Sarawak secured investments worth RM10.43bn

Sarawak has recorded approved investments totalling RM10.43bn across 212 projects for 3QFY24, which are expected to create about 5,400 new job opportunities. The manufacturing sector was the largest contributor at 55.7%, attracting investments worth RM5.81bn, followed by the services sector, and the primary sector. – The Edge Market

Petronas Chemicals reports first quarterly loss of RM789m

Petronas Chemicals Group posted its first quarterly net loss since listing to RM789m in 3QFY24, mainly for its investment in Pengerang Petrochemical Company (PPC). Its earnings were also dragged down by the revaluation of shareholders loans to PPC. The company has completed all performance test runs at its petrochemical units in PPC and is gearing up for commercial operations by year-end. – New Straits Times

Sime Darby Property’s net profit slips 12% in 3QFY24

Sime Darby Property’s net profit slips 12% YoY to RM128.3m in 3QFY24 amid higher administration expenses. Nonetheless, the strong sales in the first nine months helped lift Sime Darby Property's cumulative net profit and revenue to record highs. it has already hit 91% of its full-year sales target of RM3.5bn for 2024 by September. Its unbilled sales stood at RM3.7bn. It's cash hoard ballooned to RM790.7m and its net gearing improved to 19.5% at end-September, indicating the developer is well-capitalised for future developments. - The Edge Market

MyEG Services’s net profit jumps 62.5% in 3QFY24

MyEG Services’ net profit jumped 62.5% YoY to RM195.1m in 3QFY24 on the back of higher revenue. The improved performance was due to contribution from web3 application service fees on the Zetrix blockchain platform such as ZTrade, ZCert and Digital ID registration and transaction as well as contribution from the sale of Zetrix tokens. The company said it is cautiously optimistic that the long-term outlook remains positive as it continues to introduce innovative services in Malaysia as well as globally. - New Straits Times

Hap Seng Plantations’ net profit up 46.5% in 3QFY24

Hap Seng Plantations’ net profit jumped 46.5% YoY to RM55.4m in 3QFY24 mainly due to higher average selling price and higher sales volume of all palm products. FFB production was 12% higher in 3QFY24 due to seasonal yield trend and changes in cropping patterns. The group expects its results for the financial year ending Dec 31, 2024 to continue to be influenced by movements in commodity prices. - The Star

Our Thoughts

Wall Street closed on a positive note due to late buying activities after days of decline. Buying interests were mostly centered on Nvidia whose earnings came in after the closing bell were better than expectations. Meanwhile, the US 10-year yield inched higher at 4.414%. Over in Hong Kong, the HSI managed to stay above water following positive comments from fund managers that Chinese equities are currently trading at bargain levels. However, buying activities remained rather muted over expectations on Trump’s policy going forward. Back home, the FBM KLCI ended below the psychological 1,600 level again as investors remain mostly sidelined. Although we expect some window dressing activities to emerge and even if it occurs, the impact may be rather subdued as sentiment has turned cautious over the past month. Therefore, we believe the local bourse will be stuck within a tight trading range of between 1,595-1,610 in the absence of any strong buying catalysts.

Source: Rakuten Research - 21 Nov 2024

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