Market Review & Outlook
Malaysia Market Review. The FBM KLCI (-0.4%) finished the week lower but still manage to close the week on a positive tone with +0.7% wow gains. The lower liners extended their pullback, only the Energy (+0.1%) and Plantation (+0.01%) sectors outperformed the negative sectorial peers.
Global Markets Review. Wall Street charged higher as the Dow (+1.1%) reclaimed the 41,000 psychological level, lifted by the dovish remarks from Federal Reserve Chairman Jerome Powell. European stock markets also edged higher, while Asia stock markets ended mixed.
Market Outlook. Although the key index took a hit on last Friday, we reckon bargain hunting may emerge today as investors cheered onto the dovish stance laid out over at Wall Street with interest rate cuts are largely on the horizon. We also think that the lower liners could brace for bargain hunting as the recent pullback led many stocks trading near the oversold territory. As we enter the final week of August, investors’ attention will remain focus onto the peak of corporate earnings releases. Sector wise, we expect the technology sector to mirror the gains on Nasdaq last Friday. We also favour the commodities-related stocks such as oil & gas as well as plantation following the recovery in crude oil and crude palm oil prices as of late.
FBM KLCI Technical Review & Outlook
Technical Commentary: The FBM KLCI formed a bearish candle as the key index formed a short-term consolidation pattern above the 1,600 pts. 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
Affin Bank Bhd saw its net profit edge up 4.7% year-on-year to RM118.58 million in 2QFY2024, up from RM113.23 million the year before, thanks largely to writeback of impairment losses that helped offset a decline in income.
MISC Bhd's net profit for 2QFY2024 rose 19.43% to RM540.9 million from RM452.9 million a year ago, due to higher profit in the marine and heavy engineering segment, as well as the petroleum and product shipping segment.
Malaysian Genomics Resource Centre Bhd's (MGRC) wholly-owned subsidiary MGRC Healthcare Sdn Bhd has partnered Kumpulan Medic Iman Sdn Bhd, which is under TDM Bhd, to offer advanced genetic screening services.
KIP REIT is acquiring a 4,663-sq metre land in Gerik, Perak, for RM14.8 million, marking its third acquisition this year.
D&O Green Technologies Bhd’s net profit for 2QFY2024 surged nearly 11 times to RM7.76 million from RM716,000 a year earlier, due to higher revenue across its main business segments.
Sports Toto Bhd posted a net profit of RM67.6 million for the fourth quarter ended June 30, 2024 (4QFY2024), up 8.4% from RM62.3 million a year ago, driven by stronger performance of its principal subsidiary, STM Lottery Sdn Bhd.
Uchi Technologies Bhd said its net profit for 2QFY2024 grew 13.38% to RM32.17 million from RM28.37 million a year earlier, driven by the US dollar's appreciation against the ringgit.
Tomypak Holdings Bhd is selling a property in Senai, Johor, including 4.14 hectares of land and factory buildings, for RM31 million.
Telekom Malaysia Bhd said that its agreement to acquire a stake in Digital Nasional Bhd (DNB) has been terminated after DNB declined TM's request for additional time to seek shareholders' approval.
Pantech Group Holdings Bhd plans to list two wholly-owned subsidiaries, Pantech Stainless & Alloy Industries and Pantech Steel Industries, on the Main Market of Bursa Malaysia through a special purpose vehicle (SPV) named Pantech Global Bhd.
Hibiscus Petroleum Bhd’s subsidiary, Straits Hibiscus Sdn Bhd, has agreed to acquire a 30% interest in the Block PM327 production sharing contract through a farm-in arrangement with Petronas Carigali Sdn Bhd.
Jati Tinggi Group Bhd has secured a RM39.9 million contract to install 33kV XLPE underground cables in Selangor.
Keyfield International Bhd has secured a RM48 million contract to provide an accommodation workboat with a primary charter starting August, valued at RM34.6 million and an extension option worth RM13.4 million.
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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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| 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 |