Market Review & Outlook
Malaysia Market Review. The FBM KLCI (+0.04%) rose for the fourth straight session, anchored by gains in selected banking heavyweights. The lower liners staged a pullback, only the Financial Services (+0.4%) and Healthcare (+0.1%) sectors outperformed the mostly negative sectorial peers.
Global Markets Review. Wall Street advanced as concern over sluggish economic growth dwindled following the stellar retail sales data which rose 1.0% mom in July 2024 – the strongest pace since January 2023. European stock markets stayed buoyant with banks and technology shares leading the gains, while Asia stock markets closed mostly upbeat.
Market Outlook. Given that concerns over the rising risk of recession has dissipated following the better-than-expected US economic data, we expect the positive sentiment to permeates to stocks across Bursa Malaysia. Overtime, we gather that the key index managed to defend the 1,600 pts, signaling buying support amongst key index heavyweights is still largely prevalent. The lower liners, however, has turned wobbly, impacted by the mixed bag of corporate earnings performance. For now, all eyes will focus onto the release of Malaysia 2Q24 GDP data which is widely anticipated after earlier advanced reading recorded 5.8% yoy growth – the quickest pace since 4Q22. We expect the technology sector to gain ground, mirroring the large strides of Nasdaq overnight. The telco sector may shine after four mobile network operators (MNOs) have submitted tender to participate in the second 5G network.
FBM KLCI Technical Review & Outlook
Technical Commentary: The FBM KLCI formed a hammer candle to stay above SMA50 and middle Bollinger Band yesterday. Indicators remained 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
Boustead Heavy Industries Corp Bhd (BHIC) has secured a RM378mil contract from the Defence Ministry for in-service support and performance-based services for the Royal Malaysian Air Force (RMAF) helicopters.
IJM Corp Bhd’s proposed RM124 million acquisition of a 44.83% stake in Pestech International has been called off due to unmet conditions in the agreement.
Datuk Shahriman Shamsudin, managing director of Sapura Resources Bhd, has been instructed to abstain from managing the group's aviation business to avoid a conflict of interest, as he is also involved with another aviation-related company Explorer Group Sdn Bhd.
RCE Capital Bhd's net profit dropped 17.8% to RM30.3 million in 1QFY2025 from RM36.9 million a year earlier, mainly due to higher impairment losses on receivables.
Samchem Holdings Bhd's net profit for 2QFY2024 dropped 6.3% to RM5.06 million from RM5.4 million a year ago due to lower gross profit margins.
S P Setia Bhd has initiated arbitration proceedings against Putrajaya Holdings Sdn Bhd, seeking RM69.53 million in damages for breach of contract.
Dialog Group Bhd reported a 9% increase in net profit to RM138.4 million for 4QFY2024 from RM126.8 million a year earlier, driven by higher upstream production.
Keyfield International Bhd more than doubled its net profit to RM70.04 million in 2QFY2024 compared to RM30.16 million over the same period a year earlier.
Duopharma Biotech Bhd reported a 33.1% increase in net profit to RM16.69 million in 2QFY2024, from RM12.54 million a year ago.
Sunway Real Estate Investment Trust reported an 11.3% increase in net property income (NPI) to RM129.3 million in 2QFY2024, from RM116.2 million a year ago, driven by an enlarged property portfolio and improved retail and hotel segment performance.
ELK-Desa Resources Bhd reported a 4% decline in net profit to RM8.14 million for the first quarter ended June 30, 2024 (1QFY2025), from RM8.5 million a year ago.
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| 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 |