Market Review & Outlook
Malaysia Market Review. The FBM KLCI (+1.5%) marched sharply higher to close at the highest level since December 2022, supported by gains in selected banking heavyweights. Similarly, the lower liners also gained momentum, while the financial sector (+3.7%) outperformed among its sectoral peers.
Global Markets Review. US stock markets closed higher overnight, lifted by mounting expectation that the Fed will begin easing monetary policy next month. European stock markets ended higher, while Asian stock markets finished mixed as investors awaited central bank releases on rate decision from South Korea and Australia this week.
Market Outlook. The local market remained sturdy as foreign funds continued to flow into the market amidst optimism on Malaysia’s economic strength. With the key index breaking through the 1,630 hurdle, we expect the strong momentum to persists. Likewise, we opine that the lower liners to follow a similar pattern but profit taking activities may take place over the near term. For now, investors will be monitoring onto the upcoming barrage of corporate earnings release this week. On the global front, all eyes will focus onto EU inflation rate and US FOMC minutes. We favor the consumer sector in light of the recent salary adjustment for civil servants, which is expected to boost spending activity. Also, we are optimistic on transportation sectors following the release of July export data, which surged by 12.3% mom thanks to improved global demand.
FBM KLCI Technical Review & Outlook
Technical Commentary: The FBM KLCI another bullish candle to record its seventh straight session of gains as the key index retested the upper Bollinger Band. Indicators stayed positive as the MACD Line rose above the zero level, while the RSI hovered above 50. The next resistance is located at 1,680. Support is envisaged around 1,600.
Company News
Sunmow Holding Bhd's wholly-owned subsidiary Sunmow Construction Sdn Bhd's joint venture has won the bid for works related to Package 4B (Bukit Pagon to Long Luping) of Phase 2 of the Sarawak-Sabah Link Road project, valued at RM1.02bil.
Batu Kawan Bhd third quarter ended June 30, 2024 net profit increased by 58.2% to RM131 million from RM82.8 million, with revenue growing by 6.2% to RM5.7 billion from RM5.35 billion.
Kuala Lumpur Kepong Bhd third quarter ended June 30, 2024, net profit surged 185.6% year-on-year to RM240.2 million from RM84.1 million, driven by strong performance in the plantation segment.
Lagenda Properties Bhd's net profit for the second quarter ended June 30, 2024 rose by 45.8% to RM48.4 million from RM33.2 million a year earlier, on higher contributions from property development and construction divisions.
Perdana Petroleum Bhd posted a net profit of RM34.7 million for the second quarter ended June 30, 2024, a fourfold increase from RM8.65 million a year earlier, marking its highest quarterly profit in 16 years.
EcoFirst Consolidated Bhd is acquiring a 4.51-acre piece of freehold land in Kajang for RM35 million to develop a mixed-use project, with an estimated gross development value of RM380.9 million.
Kotra Industries Bhd's net profit for the fourth quarter ended June 30, 2024 (4QFY2024) declined 4.5% to RM12.49 million from RM13.09 million a year earlier, primarily due to higher tax expenses.
Carlsberg Brewery Malaysia Bhd reported a 10% decline in net profit for the second quarter ended June 30, 2024 to RM79.40 million, compared to RM88.24 million a year earlier.
IJM Corp Bhd has secured two contracts worth a total RM561 million to construct data centres in Johor and an industrial manufacturing facility in Penang.
Hextar Global Bhd reported a net profit of RM19.16 million for 2QFY2024, more than double the RM8.67 million from the same period last year.
Kerjaya Prospek Group Bhd has secured a RM275.29 million contract for a 50-storey building in Bandar Tanjung Pinang, Penang.
Malaysia Airports Holdings Bhd reported a record 12.4 million in passenger movements in July, up 7.3% from the previous month.
Prolintas Infra Business Trust reported a net profit of RM4.03 million for the second quarter ended June 30, 2024, down from RM14.64 million a year earlier due to higher finance costs and tax expenses.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.449264 | 4.480081 |
EUR | 4.653002 | 4.657428 |
CNY | 0.611489 | 0.612097 |
HKD | 0.571899 | 0.576406 |
SGD | 3.300709 | 3.323891 |