Previous Day Highlights

FBM KLCI closed lower as investors struggled to identify positive catalysts. The benchmark index down 0.59% or 9.50 pts to close at 1,588.68. Majority of sectors were negative with utilities (-1.8%), construction (-1.6%), and plantation (-1.4%) leading the losses; while gainers were seen in industrial products & services (+0.6%), and property (+0.1%). Market breadth was negative with 675 losers against 371 gainers. Total volume stood at 3.44bn shares valued at RM2.49bn.

Major regional indices trended mixed. HSI declined 0.53%, to end at 19,601.11. SHCOMP increased 0.07%, to close at 3,370.40. Nikkei 225 eased 0.85%, to finish at 38,026.17. STI slid 0.12%, to close at 3,739.22.

Wall Street ended higher as markets digest Nvidia results. The DJIA was up 1.06%, to end at 43,870.35. Nasdaq rose 0.03%, to close at 18,972.42. S&P500 gained 0.53%, to finish at 5,948.70.

News For The Day

Hap Seng 3QFY24’s net profit triples

Hap Seng’s 3QFY24 jump three-fold YoY to RM193.1m, on improved contributions from the diversified group’s plantation, property and credit financing divisions. The group declared a second interim dividend of 10sen per share. Going forward, Hap Seng expects high CPO prices to remain a boon for its plantation business, increased tourist arrivals and spending to benefit the group’s hospitality segment under the property division, and for continued prudent lending to support minimising NPLs under its credit financing business. - The Edge Market

SunCon's 3QFY24 profit jumps 32.71%

Sunway Construction’s 3QFY24 profit surged 32.71% to RM46.5m on the accelerated progress of its data centre projects. The group declared a second interim dividend of 2.5sen per share. The accelerated progress of its data centre projects in its construction segment offset the precast segment’s lower turnover and profit during the quarter under review. – The Edge Market

UEM Sunrise 3QFY24 profit more than doubles

UEM Sunrise’s 3QFY24 net profit more than double YoY to RM23m, thanks to higher land sales margin and higher operating profit margin in the latest quarter. The group is confident in meeting its full-year sales target of RM1bn, given the strong momentum it has seen so far. – The Edge Market

Mega First's 3QFY24 net profit rises 14%

Mega First’s 3QFY24 net profit rose 13.8% YoY to RM116.6m, underpinned by stronger earnings from its renewable energy and resources segments. On its outlook, the group is confident of sustaining its growth momentum achieved in the normalised profit after tax and non-controlling interest (PATNCI) during 9MFY24, which will be driven by the enhanced generation capacity. - The Edge Market

Theta Edge to form JV with iStream360

Theta Edge has partnered local data-science company iStream360 to develop “market transformative” artificial intelligence (AI), blockchain and advanced system solutions. The board is of the opinion the JV will have material impact on the financial position of the company and recognises the potential for long-term growth and profitability from the JV company, subject to the successful execution of the business. - The Edge Market

Our Thoughts

Wall Street ended higher, bolstered by Nvidia’s strong earnings. However, trading remained volatile as investors processed the latest U.S. economic data, including a surprising dip in initial jobless claims reported by the Labor Department. The Dow climbed 462 points, or 1.1%, to close at 35,021. The S&P 500 advanced 0.5%, while the Nasdaq managed a slight gain of under 0.1%. In Hong Kong, stocks closed lower as some corporations reported earnings that fell short of market expectations, triggering a sell-off in affected stocks and causing the HSI to fall 0.53%. On the domestic front, the benchmark index ended lower due to heavy selling in utilities, plantation, and construction stocks. At this juncture, the FBM KLCI continues to consolidate, showing little sign of a strong rebound due to subdued buying interest and cautious trading. The benchmark index faces persistent selling pressure, with key support at 1,585. A breach of this level could trigger further declines. That said, the FBM KLCI is trading in the oversold region, presenting an opportunity for investors to accumulate blue-chip stocks that have experienced significant declines in recent sessions due to their attractive valuations. As such, we expect the benchmark index to move within the range of 1,585-1,610 today.

Source: Rakuten Research - 22 Nov 2024

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