Opening Daily Highlight
Local
Charging to fresh multi-year high
Thu, 29-Aug-2024 07:06 am
by Research Team • Apex Research

Market Review & Outlook

  • Malaysia Market Review. The FBM KLCI (+1.4%) staged another strong performance to close at its highest level in 45 months with banking giants continue to lead the outperformance. The lower liners, however, remained downbeat while the 10 out of 13 major sectors closed in red with the Property sector (-3.2%) taking the worst hit.

  • Global Markets Review. Wall Street faltered as the Dow slipped -0.6% after Nvidia’s quarterly performance beat market expectations but guided a weaker sales outlook. Meanwhile, both the European and Asia stock markets closed mostly upbeat.

  • Market Outlook. After two-days of rally, we expect mild profit taking may sneak into the picture as investors will be quick to lock in recent gains. While renewed volatility on Wall Street may also dampen sentiment, we foresee downside risk to remain well cushioned by the solid quarterly financial performance delivered by banking giants along with the improved foreign fund inflow as of late. On the other hand, the lower liners may continue to grapple with volatility amidst the on-going flurry of corporate earnings releases. Sector wise, we reckon the technology sector may mirror the weakness on Nasdaq overnight. Meanwhile, we continue favour the banking sector amid the recent batch of solid corporate earnings. We also like the plantation sector that is riding onto the better production and export data in recent months.

     

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed another bullish candle as the key index advanced towards the upper Bollinger Band yesterday. 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 1,630.

 

Company News 

  • Malayan Banking Bhd’s net profit for the second quarter ended June 30, 2024 (2QFY2024) rose 8.2% to RM2.53 billion from RM2.34 billion in the same period a year earlier, thanks to lower provisions and tax expenses.

  • Genting Plantations Bhd’s net profit for the second quarter ended June 30, 2024 (2Q 2024) rose to RM85.12 million from RM70.97 million in the same period last year, driven by gains in the plantation segment.

  • KLCCP Stapled Group Bhd said its 2QFY2024 net profit rose 5.67% to RM191.06 million from RM180.8 million a year ago, on commendable performances from all businesses, especially the retail and hotel segments. 

  • Sunway Bhd posted a net profit of RM270.47 million for 2QFY2024, up 80.4% from RM149.43 million a year earlier, on stronger operating performance across all business segments, coupled with gain of RM89.4 million from redemption of an investment and newly acquired investment properties of an associate. 

  • Axiata Group Bhd returned to the black in 2QFY2024 with a net profit of RM134.9 million, compared with a net loss of RM576.22 million a year earlier, contributed by strong performance from all operating companies except Link Net and Dialog. 

  • Malakoff Corp Bhd posted a net profit of RM93.6 million for 2QFY2024, compared to a net loss of RM318.7 million a year ago, on the back of higher earnings contributions from two Johor-based power plants amid reduced coal costs, coupled with a compensation received for compulsory land acquisition. 

  • DRB-Hicom Bhd posted a net loss of RM17.08 million in 2QFY2024 against a net profit of RM33.71 million a year ago, mainly due to weaker financial performance in Proton Holdings Bhd and losses from Pos Malaysia Bhd following reduced revenue in its international business. 

  • AirAsia X Bhd reported a 13% fall in net profit for 2QFY2024 to RM4.82 million from RM5.54 million a year earlier, on lesser travels due to the traditionally weaker travel season. 

  • Supermax Corp Bhd suffered its largest quarterly net loss of RM127.93 million for its fourth quarter ended June 30, 2024 (4QFY2024), hit by a write down of high price inventory at an overseas subsidiary amounting to RM72.85 million. 

  • IOI Properties Group Bhd’s 4QFY2024 net profit jumped more than five times in 4QFY2024 from a year earlier thanks largely to a revaluation gain.

  • QL Resources Bhd’s net profit rose 16% to RM107.4m in 1QFY2025 from a year earlier mainly led by its convenience store chain business. 

  • IJM Corp Bhd’s net profit for 1QFY2025 fell 13.68% to RM86.88 million from RM100.64 million a year earlier, dragged mainly by unrealised foreign exchange and fair value losses.

Sentiment: Positive
Read more details in:

Disclaimer

The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.

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.

Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.

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