Opening Daily Highlight
Local
Building onto recovery momentum
Thu, 15-Aug-2024 06:55 am
by Research Team • Apex Research

Market Review & Outlook

  • Malaysia Market Review. The FBM KLCI (+0.2%) eked our minor gains, lifted by the eleventh-hour buying support in selected index heavyweights yesterday. The lower liners also advanced, while the Telco & Media (-0.7%) and Transport & Logistics (-0.2%) sectors underperformed the positive sectorial peers.

  • Global Markets Review. Wall Street marched higher as the Dow extended its gains to close above the 40,000 psychological level after the US CPI data which slowed for the fourth straight month to 2.9% yoy in July 2024 came within market expectations. European stock markets also advanced, while Asia stock markets ended mostly positive.

  • Market Outlook. With US CPI data coming in tune with consensus expectations, the prospects of interest rate cut in September was reinforced. Therefore, we expect the key index to march higher, attempting to build onto its baby steps of recovery after stabilising above 1,600 pts recently. Meanwhile, the lower liners are also turning more favourable, supported by the positive market breadth as bargain hunting activities remain in place. Going forward, key economic data in focus today would be China’s Retail Sales, Industrial Production and Unemployment Rate as well as US Retail Sales, Manufacturing Production and Industrial Production. We favour the Construction sector, riding onto the improving prospects and fundamentals. Meanwhile, export-related players may be impacted by the weakening of USD against a basket of currencies, including the Malaysia Ringgit which fell to 16-month low.

 

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed a gapped up to close above SMA50 and middle Bollinger Band yesterday. Indicators have turned positive as the MACD Line climbed above the Signal Line, while the RSI hovered above 50. The immediate resistance is located at 1,630. Support is envisaged around 1,530.

 

Company News 

  • S P Setia Bhd reported a net profit of RM404mil for the six-months period ended June 30, 2024 (1H24), an increase from last year’s profit of RM121mil, as it gained RM361mil profit from strategic monetisation of its landbanks in Taman Pelangi Indah 2, Johor and Glengowrie, Semenyih.

  • Bank Negara Malaysia (BNM) has imposed administrative monetary penalties on Malayan Banking Bhd (Maybank) for RM4.32mil and CIMB Group Holdings Bhd for RM760,000 for e-banking service outages that occurred in June and April, respectively.

  • VSTECS Bhd's net profit for the second quarter ended June 30, 2024, fell 2.58% to RM15.25 million from RM15.65 million a year earlier, due to higher operating expenses and a lower fair value gain. 

  • Ranhill Utilities Bhd posted a 45.8% decline in net profit to RM6.53 million in the second quarter ended June 30, 2024 (2QFY2024), from RM12.06 million a year ago, due to an RM8 million profit reversal by its O&G subsidiary Ranhill Worley Sdn Bhd.

  • Synergy House Bhd reported a net loss of RM4.77 million for the second quarter ended June 30, 2024, compared to a net profit of RM6.19 million a year earlier. 

  • Paragon Globe Bhd has secured its first serviced apartment project in Johor Bahru, with an estimated gross development value of RM1.49 billion, after its subsidiary, PGB Desa Heights Sdn Bhd, signed a deal with Tropicana Danga Bay Sdn Bhd to develop two freehold land parcels in Danga Bay. 

  • VS Industry Bhd's Philippine unit has secured a two-year contract to manufacture consumer electronics, expected to generate RM1.5 billion in revenue. 

  • Maxis Bhd has teamed up with Singaporean telecommunications conglomerate Singtel to launch Malaysia's first all-in-one platform for 5G network, edge computing, cloud and services orchestration, built on Singtel’s Paragon for telco networks. 

  • Solarvest Holdings Bhd and NCT Group have launched phase one of their solar-ready industrial park at the NCT Smart Industrial Park in Sepang. 

  • Frontken Corp Bhd reported a 4.4% increase in net profit for the second quarter ended June 30, 2024 to RM33.33 million, up from RM31.91 million a year earlier, driven by gains from its Taiwan subsidiary.

  • Varia Bhd has secured a RM61.45 million construction subcontract for the Sultan Azlan Shah Campus project from Kemuncak Pesaka Sdn Bhd, through its subsidiary Pembinaan Teguh Maju Sdn Bhd.

Sentiment: Positive
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Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 3.933208 3.960978
EUR 4.575563 4.585407
CNY 0.571282 0.571899
HKD 0.503427 0.507495
SGD 3.076058 3.100967