Market Review & Outlook
Malaysia Market Review. The FBM KLCI (-1.3%) pared most of its previous session gains as profit taking looms with more than two third of the key index components finished lower. The lower liners extended their slide, while the REIT sector (+0.2%) emerged as the sole outperformer.
Global Markets Review. Wall Street ended mixed as the Dow climbed +0.6% as weekly jobs claims fell; easing recessionary concerns, while the S&P 500 closed flat as earlier gains were weighed down by weakness in Nvidia (-6.4%). European stock markets advanced, while Asia stock markets finished mostly in red.
Market Outlook. Expectedly, the recent key index rally took a breather as investors took the opportunity to book in recent gains. The weakness was stoked by renewed volatility on Wall Street overnight following the weaker-than-expected sales guidance from Nvidia. Meanwhile, we reckon the lower liners may languish in the red as selling activities appears to be unabated. Still, we reckon that the recent market correction presents a good opportunity for investors to accumulate onto fundamentally sound companies for longer term investment horizon. Economic wise, investors will be keeping a close tab onto US Chicago PMI and Michigan Consumer Sentiment data later tonight. Amid the renewed volatility, we expect the REIT sector which is touted to be defensive in nature to remain resilient. We also think that the Technology sector which has slumped for the past five straight sessions could be ripe for bottom fishing.
FBM KLCI Technical Review & Outlook
Technical Commentary: The FBM KLCI formed a bearish candle as the key index rejected the upper Bollinger Band yesterday. Indicators, however, 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
IHH Healthcare Bhd’s net profit increased to RM623 million in the second quarter ended June 30, 2024 (2Q FY2024) from RM301 million in 2Q FY2023, boosted by the strong operational performance, as well as the positive impact of deferred tax credits and net monetary gains from the application of MFRS 129.
Tenaga Nasional Bhd's (TNB) net profit for the second quarter ended June 30, 2024 (2QFY2024) jumped more than fourfold to RM1.45 billion from RM327.9 million a year ago, as it recorded higher electricity sales, a favourable foreign exchange translation and lower net finance costs.
Press Metal Aluminium Holdings Bhd’s net profit surged 65% in 2QFY2024 to RM505.83 million compared to RM305.79 million over the same period a year earlier, thanks mainly to higher price sold and stronger US dollar that boosted export receipts.
PPB Group Bhd's 2QFY2024 net profit rose 52.32% year-on-year to RM308.92 million from RM202.81 million, thanks to higher contribution from Wilmar International Ltd.
Genting Bhd reported a 49% jump in its 2QFY2024 net profit, partly helped by other non-operating gain and a reduction in the share of losses.
Genting Malaysia Bhd saw its net profit rise 74.5% to RM82.24 million for 2QFY2024 from RM47.12 million a year earlier, driven by its leisure and hospitality business.
Velesto Energy Bhd reported a more than threefold year-on-year surge in its 2QFY2024 net profit, thanks to higher utilisation rates and an increase in average daily charter rates.
Tropicana Corp Bhd’s earnings surged to RM43.6m in 2QFY2024, boosted by a large unrealised gain of RM62.97 million on quoted shares.
Kenanga Investment Bank Bhd reported a 43.9% fall in 2QFY2024 net profit to RM9.37 million, due to impairment provisions on its fees receivables amounting to RM6.6 million for the quarter, immediately sending its shares to their lowest in more than six months.
Capital A Bhd posted a much larger net loss of RM454.2 million for 2QFY2024, mainly due to higher foreign exchange losses and aircraft depreciation charges.
Hong Leong Financial Group Bhd saw its net profit for the fourth quarter ended June 30, 2024 (4QFY2024) rise by 21% to RM806.09 million, compared with RM663.91 million over the same period last year, led by its banking unit.
Hong Leong Bank Bhd’s net profit for 4QFY2024 rose nearly 20% to RM1.03 billion compared to RM864.68 million over the same period a year earlier, thanks to higher operating income and provisions writeback.
Disclaimer
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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 | 4.449264 | 4.480081 |
| EUR | 4.653002 | 4.657428 |
| CNY | 0.611489 | 0.612097 |
| HKD | 0.571899 | 0.576406 |
| SGD | 3.300709 | 3.323891 |