Market Review & Outlook
Malaysia Market Review. The FBM KLCI (-0.3%) slipped as investors react negatively on the rising geopolitical tension between Ukraine and Russia. The lower liners also edged lower, while the utilities sector (-0.7%) was the worst performer among its sectoral peers.
Global Markets Review. Wall Street ended mixed ahead of the release of the highly-anticipated Nvidia earnings report. The European markets ended in red in view of the rising geopolitical tension, while the Asean stock market closed lower as China’s central bank kept its benchmark lending rates unchanged, following cuts made in October.
Market Outlook. We view the pullback in the local bourse as anticipated, as investors adopt a more cautious stance amid global uncertainty. With the key index slipping below the 1,600 support level, we expect volatility to persists. The lower liners may face tepid trading sentiment due to weakness from the main market. On the global front, all eyes will focus onto US existing home sales that will release later today. Back home, investors will be focusing on the ongoing quarterly results season. Sector wise, we opined the telco sector, particular telco tower operators may face some backlash as the government is looking to review the entire Phase 2 of Jendela, including the process of selecting tower locations. Meanwhile, we reckon the upward momentum in the technology sector will persist, driven by Nvidia's quarterly results, which have exceeded market expectations.
FBM KLCI Technical Review & Outlook
Technical Commentary: The FBM KLCI formed a bearish candle to slip back below 1,600 psychological level as well as below 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
Petronas Chemicals Group Bhd sank into the red for the first time ever since its listing more than a decade ago in the third quarter ended Sept 30, 2024 (3QFY2024).
Sime Darby Property Bhd’s net profit for 3QFY2024 fell 12% to RM128.26 million from RM144.92 million on higher administration expenses.
SD Guthrie Bhd, formerly known as Sime Darby Plantation Bhd, saw its net profit for 3QFY2024 fell 36.75% to RM766 million from RM1.21 billion due to the absence of a gain on land disposal, despite higher crude palm oil (CPO) prices.
Perdana Petroleum Bhd’s net profit jumped threefold for 3QFY2024 to RM75.8 million from RM22.75 million a year earlier thanks to better charter rates, vessel utilisation and forex gain.
Sports Toto Bhd’s net profit for the first quarter ended Sept 30, 2024 (1QFY2025) fell 31.3% to RM41.33 million from RM60.17 million a year ago, dragged by lower lottery sales as well as lower sales performance and forex loss impact.
Hap Seng Plantations Holdings Bhd’s net profit for 3QFY2024 rose 46% to RM55.43 million — its highest in nearly three years — from RM37.85 million a year ago, boosted by strong palm oil prices and lower operating expenses.
RCE Capital Bhd’s net profit for the second quarter ended Sept 30, 2024 (2QFY2024) dropped 27.25% to RM27.83 million from RM38.25 million a year ago, as its revenue slipped 8.4% to RM80.41 million as the group prioritised better credit quality disbursement for sustainable financing growth.
MyEG Services Bhd’s net profit for 3QFY2024 increased 62.55% to RM195.05 million from RM120 million in the same quarter last year, as revenue for the quarter grew 27.8% to RM248.13 million from RM194.12 million driven by the fair value gain in its investment in HeiTech Padu Bhd as a result of mark-to-market practice.
Pos Malaysia Bhd recorded 49.6% higher net loss for 3QFY2024 to RM49.89 million from RM33.34 million in the same quarter a year earlier on lower postal and freight volume, and higher other and tax expenses.
UOA Development Bhd’s net profit for 3QFY2024 dropped 5.2% to RM48.34 million compared with RM50.86 million a year ago, despite revenue rising 32% to RM141.36 million from RM107.04 million on higher progressive recognition of ongoing development projects.
Amway (Malaysia) Holdings Bhd’s net profit for 3QFY2024 dropped to RM32.9 million from RM46.2 million a year earlier, as revenue fell 10.1% to RM299.84 million from RM333.5 million amid softer consumer demand for health and wellness products and home appliances.
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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 |