Previous Day Highlights

13 December 2024 FBM KLCI closed lower as investors remained cautious. The benchmark index dipped 0.07% or 1.12 pts to close at 1,602.08. Gainers were seen in industrial products & services (+0.40%), construction (+0.35%), and utilities (+0.26%); while losers were seen in health care (-1.15%), telecommunications (-0.52%), and transportation (- 0.45%). Market breadth was negative with 548 losers against 466 gainers. Total volume stood at 3.33bn shares valued at RM2.53bn.

Major regional indices trended positive. HSI gained 1.20%, to end at 20,397.05. SHCOMP increased 0.85%, to close at 3,461.50. Nikkei 225 was up 1.21%, to finish at 39,849.14. STI rose 0.43%, to close at 3,809.27.

Wall Street closed lower as the producer price index rose more than expected in November. The DJIA dropped 0.53%, to end at 43,914.12. Nasdaq eased 0.66%, to close at 19,902.84. S&P500 eased 0.54%, to finish at 6,051.25.

News For The Day

EcoWorld’s 4QFY24 net profit soars

Eco World’s 4QFY24 net profit soars to RM83.4m, a big leap compared with RM3.3m in the preceding year. The improved earnings performance to strong 31.5% growth in profit after tax generated by home operations and lower impairment in the carrying values of its investment in EcoWorld International Bhd (EWI) recognised in the quarter under review. The group declared a dividend of 2sen per share for 4QFY24. – The Edge Market

Bermaz Auto 2QFY4/25 net profit declines

Bermaz Auto’s 2QFY4/25 net profit drop 55% to RM40.4m due to lower sales volumes in its Mazda and Kia domestic operations as intensified competition, particularly from Chinese-made vehicles, which are competitively priced and equipped with advanced connectivity features. Looking ahead, Bermaz foresees a challenging business environment in FY2025, citing inflationary pressures and other macroeconomic challenges. - The Edge Market

Hiap Teck posts RM34.7m 1QFY6/25 net profit

Hiap Teck’s 1QFY6/25 net profit increase significantly at 467% to RM34.7m, marking a significant turnaround from a net loss of RM9.43m. This was due to a profit contribution of RM42m from its JV. Looking ahead, Hiap Teck cautioned that the global steel market may continue to face significant challenges due to subdued demand in China as well as potential policy shifts and tariff increases in the US under the incoming administration. - The Edge Market

Paramount buys land for RM145m

Paramount is acquiring a 18,317 sq m leasehold land together with a residential development comprising 93 units of low-rise luxury condominium in Taman U-Thant, Kuala Lumpur for RM145m cash. With a projected GDV of not less than RM300m to be generated from the proposed development over a period of 5 years, the proposed acquisition will strengthen the group’s current total GDV of RM6.22bn and contribute positively to future earnings. - The Edge Market

Homeritz reports fire outbreak at facility in Muar

Homeritz reported a fire at its Muar, Johor facility, affecting a spraying line and work-in-progress inventory. Other production areas were unaffected. The company will use a spraying line at another nearby facility to mitigate production disruptions. The financial impact is still under evaluation. - The Edge Market

Our Thoughts

Wall Street closed broadly lower as the producer price index (PPI) which tracks wholesale prices came in hotter than anticipated, heightening concerns if inflation could be curtailed. Despite many expecting the Fed to cut rate next week, the US 10-year yield edged higher to 4.336%. As for Hong Kong, the HSI rebounded as investors wait for more details from a key Chinese economic policy meeting coupled with improved expectations that the Fed will cut rate following a tame CPI figure for November. Back home, the FBM KLCI closed marginally lower amid some bargain hunting activities particularly when the index dipped below the 1,600 level. In view of the low market liquidity, we believe performance of the local bourse to remain lacklustre thus expect the index to trend between the 1,600-1,610 range today. .

Source: Rakuten Research - 13 Dec 2024

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