Previous Day Highlights

2 December 2024 FBM KLCI ended lower pressured by late-session selling activities. The benchmark index declined 0.20% or 3.20 pts to close at 1,594.29. Majority of sectors were negative with telecommunications (-0.9%), utilities (-0.5%), and energy (- 0.4%) leading the losses; while gainers were seen in plantation (+0.6%), and property (+0.5%). Market breadth was negative with 539 losers against 515 gainers. Total volume stood at 3.43bn shares valued at RM3.18bn.

Major regional indices trended mixed. HSI gained 0.29%, to end at 19,423.61. SHCOMP increased 0.93%, to close at 3,326.46. Nikkei 225 eased 0.37% to finish at 38,208.03. STI rose 0.05% to close at 3,739.29.

Wall Street closed at all-time highs as investors are hoping that Trump’s business-friendly policies would drive earnings expansion. The DJIA added 0.42%, to end at 44,910.65. Nasdaq rose 0.83%, to close at 19,218.17. S&P500 rose 0.56%, to finish at 6,032.38.

News For The Day

Higher aluminium prices drive Press Metal’s net profit

Press Metal’s 3QFY24 net profit increase 31.4% YoY to RM403.0m driven by higher aluminium prices coupled with higher contributions from its associated companies. Looking ahead, the expansion of its upstream operations, especially through alumina refineries such as PT Bintan Alumina Indonesia and PT Kalimantan Alumina Nusantara in Indonesia, will serve as a critical growth driver for the group in the next few years. - The Edge Market

QL Resources' 2QFY3/25 profit climbs 4.6%

QL Resources’2QFY3/25 net profit rose 4.6% YoY to RM128.3m on the back of improved revenue contributions from all its business segments, which helped offset increases in tax expenses and finance costs. QL is cautiously positive that its business performance will remain satisfactory in the coming quarter, with continued egg cost subsidy and ceiling price mechanisms in Malaysia. - The Edge Market

Takaful Malaysia posts higher 3QFY24 net profit

Syarikat Takaful Malaysia Keluarga’s 3QFY24 net profit rose 10.5% YoY to RM100.7m. On prospects, the company would focus on the group's core businesses in bancatakaful, treasury, employee benefits and general takaful as the key drivers of their success in leading the takaful industry. The group would also focus on diversifying into the digital segment, in particular targeting the retail general and family takaful market, including their flagship digital platform, Kaotim. - The Star

LBS Bina unlikely to hit RM1.8bn full year sales target

LBS Bina is unlikely to meet its internal sales target of RM1.8bn this year, due to deferred launches caused by a lengthy approval process. As of Nov 28, the group has a total land bank of 3,746 acres and remains confident in its strategy and looks forward to a robust performance when the projects in its pipelines come to market. - The Edge Market

Kretam 3QFY24 net profit surges 91%

Kretam’s 3QFY24 net profit surged 91% YoY to RM47.3m as accounting gains more than offset a drop in revenue from lower output and sales. Kretam remains optimistic about its 2024 outlook supported by current palm oil prices and management's efforts to improve performance. Kretam also declared the first interim dividend of half a sen per share. - The Edge Market

Our Thoughts

Wall Street rallied amid a shortened trading day as both the DJIA and S&P 500 touched new heights. Small caps also outperformed in view of the potential tax cuts as proposed by Trump. Meanwhile, the US 10-year yield eased further to 4.178%. Over in Hong Kong, the HSI managed to close on a positive note despite off the day’s high as sentiment remains cautious ahead of Trump’s tariff im. position while hoping for additional stimulus ahead of the headwinds from Trump. Back home, the FBM KLCI ended on a weak note attributed to late selling from foreign funds again. As the 3Q corporate results reporting season has ended without any nasty surprises, we believe market undertone to stablilise hence expect buyers to return if and when the index dips below the 1,590 mark. Therefore, we anticipate the index to hover within the 1,595-1,610 range today particularly propped up by the planters in line with the strong CPO price.

Source: Rakuten Research - 2 Dec 2024

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