Market Review & Outlook
Malaysia Market Review. The FBM KLCI (-0.1%) ended on a soft note driven by selling pressure in banking and plantation heavyweights. However, the lower liners stayed in the green, with the healthcare sector (+1.0%) emerging as the biggest winner among its sectoral peers.
Global Markets Review. The US stock markets closed higher (except the Dow) stem from broad gains in technology stocks, thanks to optimism ahead of the upcoming quarterly earnings from Nvidia. Meanwhile, the European markets continue to retreat in view of the rising geopolitical tension between US and Russia while the Asean stock market closed on a positive note after China pledged to follow through with its stimulus effort for Hong Kong.
Market Outlook. The FBM KLCI is expected to maintain the sideways trend as investors await the release of a slew CPI data across the region. We believe the lower liners are likely to experience increased volatility due to the escalating tensions between the two superpowers. Market pressure began to mount overnight after Putin warned the US that the threshold for using nuclear weapons had been lowered, a shift in stance following Biden’s approval for Ukraine to use US weapons to strike within Russia. On the global front, all eyes will focus onto UK inflation rate that will release later today. Back home, investors will be focusing on the ongoing quarterly results season. Sector wise, we opined that investors may take this opportunity to lock in recent gains in the plantation sector following the revision of export tax from 8% to 10% for CPO price above RM4,050 yesterday. Meanwhile, the technology sector may face some buying interest today mirroring gains in the Nasdaq overnight.
FBM KLCI Technical Review & Outlook
Technical Commentary: The FBM KLCI formed a shooting star candle to close marginally lower after erasing all its intraday gains, but managed to stay above SMA200. Indicators remained negative as MACD Line hovered below the Signal Line, while the RSI lingered below 50. Immediate resistance is located at 1,625. Support is envisaged around 1,570.
Company News
Hibiscus Petroleum Bhd’s net profit for the first financial quarter ended Sept 30, 2024 (1QFY2025) fell 51% to RM75.6 million from RM154.3 million a year earlier, dragged by planned shutdowns at four of its assets, lower oil and gas prices and the strengthening ringgit versus the US dollar.
Dutch Lady Milk Industries Bhd’s net profit in the third quarter ended Sept 30, 2024 (3QFY2024) rose a marginal 2.5% to RM17.22 million from RM16.79 million a year ago thanks to lower tax expenses.
Dialog Group Bhd net profit in 1QFY2025 grew 14.2% to RM150.97 million, from RM132.17 million a year ago, driven by better performance by its midstream business.
Malayan Flour Mills Bhd’s net profit for 3QFY2024 plummeted 69.7% to RM7.34 million, from RM24.2 million last year mainly due to bigger losses at PT Bungasari Flour Mills Tbk and the performance of its poultry integration segment through Dindings Tyson Sdn Bhd, which turned a loss, compared with a profit last year.
Cape EMS Bhd booked its first quarterly loss since its listing in March 2023, with a net loss of RM18.95 million in 3QFY2024, compared with a net profit of RM15.21 million in the same quarter last year.
Star Media Group Bhd’s net profit for 3QFY2024 surged to RM2.5 million, over 44 times the RM56,000 it made in 3QFY2023, carried by its radio and property development businesses’ higher contribution.
Teladan Group Bhd's net profit for 3QFY2024 grew 3.42% to RM7.87 million against RM7.61 million in the same quarter a year ago, as the Melaka-based property developer’s revenue expanded 17.7% to RM80.67 million — the highest since its listing in March 2021 — from RM68.56 million a year earlier.
SAM Engineering & Equipment (M) Bhd’s net profit dropped 23.7% for the second quarter ended Sept 30, 2024 (2QFY2025) amid lower contribution from its equipment segment.
APM Automotive Holdings Bhd’s net profit for 3QFY2024 dropped 27.94% to RM18.67 million as compared to RM25.91 million on unrealised forex loss arising from trade receivables denominated in foreign currencies following the ringgit’s strengthening.
Comfort Gloves Bhd’s net loss for 3QFY2024 widened to RM26.32 million during the quarter versus RM7.91 million in the same period last year on higher provisions for slow-moving inventory, write-downs and sizeable foreign exchange loss.
Hextar Global Bhd’s net profit for 3QFY2024 rose 28% to RM19.70 million compared with RM15.39 million in the corresponding quarter last year on strong growth from its specialty-chemicals segment.
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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 | 4.455268 | 4.488135 |
EUR | 4.716585 | 4.723137 |
CNY | 0.616518 | 0.616862 |
HKD | 0.572409 | 0.576643 |
SGD | 3.318330 | 3.343262 |