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Bargain hunting activities emerged
Fri, 23-Aug-2024 07:24 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI (+0.4%) staged a recovery led by bargain hunting activities after several days of sell-offs. On the other hand, lower linger edged lower, while the plantation sector (+1.3%) outperformed among its sectoral peers.

  • Global Markets Review. Wall Street lost ground on Thursday as the technology sector took a hit, driven by decline in Nvidia, Amazon, and Microsoft, as investors assessed the latest FOMC minutes, which revealed that most participants at the central bank's meeting were inclined towards a rate cut. European stock markets turned wobbly, while Asia stock markets closed mixed.

  • Market Outlook. Following the sturdy performance on the local bourse, we reckon market undertone will remain steady due to improving investor sentiment, spurred by buying support from foreign funds. The lower liners, however, will remain choppy with focus are onto larger cap stocks, while investors continue to digest a flurry of corporate earnings releases. Investors will be keeping an eye onto speeches from Powell speeches later today to gauge on the magnitude of the widely anticipated rate cut. We remain optimistic on plantation and manufacturing counters, driven by the strengthening ties between Malaysia and India, as both countries work towards enhancing aspects of the free trade agreement (FTA) by 2025.

     

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed a bullish candle to recover and stay above the middle Bollinger Band. Indicators remained positive as the MACD Line trended above the zero level, while the RSI hovered above 50. Immediate resistance is located at 1,680. Support is envisaged around 1,600.

     

Company News 

  • Capital A Bhd announced that its unit AirAsia RB 1 Ltd (AARB1) had entered into definitive agreements yesterday with aircraft lessors and private credit funds for the issuance of Regulation S secured notes (revenue bonds) worth up to US$443 million, due in September 2026 and August 2028.

  • Bumi Armada Bhd logged a net profit of RM265.96 million in 2QFY2024, more than double the RM118.77 million it recorded in a year earlier, on higher margins and contributions from both floating production storage and offloading (FPSO) vessels Armada Kraken and Armada Olombendo. 

  • Matrix Concepts Holdings Bhd's net profit stood at RM60.7 million in 1QFY2025, down 6% from RM64.6 million a year ago on the back of decreased revenue. 

  • Sime Darby Property Bhd net profit more than double in 2QFY2024 to RM161.96 million, compared to RM71.07 million in the same period last year, driven by land sales and increased sales of industrial and high-rise homes. 

  • Kerjaya Prospek Group Bhd's subsidiary is suing Apple 99 Development Sdn Bhd, a unit of Yong Tai Bhd, for failing to pay an outstanding contract sum of RM105.14 million. 

  • Kossan Rubber Industries Bhd reported a net profit of RM31.34 million for 2QFY2024, a significant turnaround from a net loss of RM3.29 million a year ago, driven by higher contributions across all business segments. 

  • Mega First Corp Bhd’s 2QFY2024 net profit grew 18.9% to RM150.36 million from RM88.61 million a year earlier, underpinned by better performances from all its operating segments. 

  • MSM Malaysia Holdings Bhd reported a net loss of RM32.40 million for the second quarter ended June 30, 2024, reversing two previous quarters of profit, due to increased raw sugar prices and higher operating costs. 

  • UEM Sunrise Bhd reported a 23.71% decline in net profit for 2QFY2024 totalling RM18.84 million, compared to RM24.7 million a year ago, attributed to higher operating expenses and a lower share of net results from JVA. 

  • Sunway Construction Group Bhd saw its net profit rise 17.8% to RM38.87 million for 2QFY2024 from RM33 million a year ago, on improved contributions from all segments. 

  • Dayang Enterprise Holdings Bhd's net profit more than doubled to RM131.44 million in 2QFY2024 from RM64.69 million a year earlier, on higher vessel utilisation rates and improved daily charter rates. 

  • Greatech Technology Bhd reported a 26.3% increase in net profit for 2QFY2024, reaching RM48.39 million compared to RM38.3 million a year earlier, due to focus on cost-optimisation and timely project completion. 

Sentiment: Positive
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Market Mover
Settlement Rates
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