Market Review & Outlook
Malaysia Market Review. The FBM KLCI (+0.1%) edged slightly higher, sustaining its position above the 1,600 level, supported by positive spillover from Wall Street. Market breadth turned positive, with gainers outnumbered decliners. The Utilities sector (+1.8%) led gains, driven by an intraday rebound in YTL and YTLP despite weaker-than-expected results. In contrast, the Plantation sector (-0.7%) was the biggest decliner.
Global Markets Review. Wall Street retreated, with all three major indices closing in the red, led by losses in the Nasdaq. The pullback came after several days of gains, as investors adopted a cautious stance ahead of the Thanksgiving holiday and reacted to the second reading of 3Q24 GDP data release which grew +2.8% yoy. Similarly, European markets closed lower as investors weighed the potential impact of Trump’s tariff proposals and US inflation data. Asian markets were mixed amid China's weaker industrial data.
Market Outlook. Sentiment on the local market has improved, aided by the run-up of the corporate earnings season, with local institutional investors acting as net buyers through bargain-hunting on weakness post-results. Despite Wall Street's negative close, the local bourse is expected to remain supported by local institutional buying activity. Large-cap and blue-chip stocks remain the preferred investment destination. The Technology sector is likely to outperform, as majority of tech companies reported better-than-expected results in the recent batch of the earnings releases. Additionally, the stabilisation of forex rates may ease concerns over forex-related earnings impacts.
FBM KLCI Technical Review & Outlook
Technical Commentary: The FBM KLCI formed another bullish candle to extend its recovery for the third straight session and stabilised above SMA200 yesterday. Indicators have turned mixed as MACD Line hooked above the Signal Line, while the RSI lingered below 50. Immediate resistance is located at 1,625. Support is envisaged around 1,570.
Company News
AMMB Holdings Bhd sharply raised its dividend payout after reporting a 7% rise in second-quarter net profit from a year earlier on interest income growth.
Inari Amertron Bhd’s net profit fell 71.6% to RM24.12 million for the first quarter ended Sept 30, 2024 (1QFY2025) — its lowest quarterly earnings in nearly nine years — from RM84.98 million in 1QFY2024, dragged by a foreign exchange (forex) loss of RM53.3 million
Petronas Gas Bhd’s net profit rose 5.4% to RM493.67 million or 24.95 sen per share in 3QFY2024, from RM468.46 million or 23.67 sen per share a year before, boosted by currency gains, and as higher offtake and reservation charges lifted revenue.
IJM Corp Bhd’s net profit for the second quarter ended Sept 30, 2024 (2QFY2025) fell 20.8% to RM74.21 million from RM93.69 million a year earlier, due to higher unrealised forex losses.
Chin Hin Group Bhd more than doubled its net profit for 3QFY2024 to RM27.67 million from RM11.6 million a year ago, thanks to revenue from newly-acquired subsidiaries that significantly boosted its gross margin.
Hengyuan Refining Co Bhd, which is involved in the refining and manufacturing of petroleum products, dropped into the red in its 3QFY2024, no thanks to a further weakening of its cracking or refining margin and high stockholding losses amid unfavourable crude oil price movements.
Kerjaya Prospek Group Bhd declared a seven sen dividend payout — comprising a special four sen dividend and a three sen interim dividend — after the builder reported a 30% growth in net profit from higher progress billings.
Boustead Heavy Industries Corp is selling its 51% stake in Contraves Advanced Devices Sdn Bhd (CAD) to its joint venture partner, German arms maker Rheinmetall AG, for RM54 million, cash.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.436869 | 4.470612 |
EUR | 4.675505 | 4.679374 |
CNY | 0.611103 | 0.611560 |
HKD | 0.570272 | 0.574102 |
SGD | 3.296965 | 3.319254 |