Market Review & Outlook
Malaysia Market Review. The FBM KLCI (+0.8%) extended its gains with more than half of the key index components closed in green yesterday. The lower liners, however, retreated with buying interest were mostly skewed towards larger cap stocks, while the Technology sector (-1.7%) underperformed, mirroring the weakness on Nasdaq overnight.
Global Markets Review. Wall Street finished little change as the Dow rose +0.02% after recovering all its intraday losses as investors turned to the sidelines in anticipation of Nvidia’s results later today. Both the European and Asia stock markets ended mixed.
Market Outlook. Following the strong movement on the FBM KLCI yesterday which closed at fresh year-to-date high, we expect the key index’s upward movement to remain steadfast as buying momentum in larger cap stocks gather pace. The improved quarterly financial performance from banking giants as well as signs of foreign funds return also contributed to the positive stance on the local bourse yesterday. Elsewhere, our view over an extended consolidation on the lower liners remains unchanged with investors digest the on-going flurry of corporate earnings releases. Looking ahead, investors will be keeping a close tab onto the impending release of Malaysia’s PPI data later today along with the widely anticipated corporate earnings from Nvidia. Sector wise, we expect the energy sector to experience mild profit taking after two consecutive sessions of rally. Meanwhile, we favour the banking sector amid the recent batch of solid corporate earnings from the likes of AmBank and Public Bank.
FBM KLCI Technical Review & Outlook
Technical Commentary: The FBM KLCI formed a bullish candle as the key index charged to close at the highest level in 44 months. 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 1,615.
Company News
S P Setia Bhd has initiated legal proceedings against its former senior management over alleged breaches of duties linked to the purchase of land parcels in Kota Kinabalu, Sabah, as well as the sale of units under the company’s Aeropod project.
Public Bank Bhd’s net profit rose 10% in the second quarter ended June 30, 2024 (2QFY2024) to RM1.78 billion from RM1.62 billion in the same period a year earlier, thanks to higher net interest income and non-interest income.
RHB Bank Bhd’s net profit fell by 11% in 2QFY2024 to RM722.31 million compared with RM808.70 million over the same period last year, dragged by provisions.
A consortium led by utility construction and tower fabrication company Rohas Tecnic Bhd has won a RM123 million contract from Gamuda Bhd to provide fabrication and installation works under Package 2 of the Sg Rasau water treatment plant project in Selangor.
Varia Bhd, has secured a RM410.3 million flood mitigation project in Segamat, Johor.
FGV Holdings Bhd has returned to the black with a net profit of RM86.38 million in 2QFY2024 compared with a net loss of RM12.9 million a year earlier, on higher profits in the plantation, and logistics and support divisions.
MBSB Bhd saw its net profit for 2QFY2024 drop 34.5% to RM54.83 million, from RM83.7 million a year earlier, on higher operating expenses and impairment allowances.
Gas Malaysia Bhd’s 2QFY2024 net profit rose 12.5% to RM110 million from RM97.8 million a year earlier, driven by higher natural gas sales, tolling fees and joint venture contributions.
Sime Darby Bhd closed the financial year ended June 30, 2024 (FY2024) on a strong footing, with its net profit more than doubling to RM3.31 billion from RM1.46 billion in the previous year.
Inari Amertron Bhd’s net profit for 4QFY2024 fell 17.54% to RM54.68 million from RM66.31 million a year earlier amid unfavourable forex movements, higher operating costs and early staging of new products.
Malaysian Pacific Industries Bhd’s saw its 4QFY2024 net profit surge nearly 11-fold to RM82.97 million as compared to RM8.14 million a year ago, thanks to higher revenue from its Asia and Europe market segments, as well as a reversal from its executive share scheme provision during the quarter.
Padini Holdings Bhd’s net profit for 4QFY2024 dropped 54.09% to RM26.31 million from RM57.31 million, following a decline in gross profit margin amid rising staff costs and a dip in revenue.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.445296 | 4.480081 |
EUR | 4.636707 | 4.641062 |
CNY | 0.611834 | 0.612450 |
HKD | 0.571749 | 0.575737 |
SGD | 3.297227 | 3.320345 |