Opening Daily Highlight
Mixed
Buying interest in banks may spur KLCI
Fri, 29-Nov-2024 07:25 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI (-0.4%) retreated, closing below the 1,600 psychological level yesterday, tracking weak overnight performance on Wall Street. Market breadth turned negative, with decliners outnumbered gainers on a ratio of 597-to-422. The Construction sector (+0.6%) emerged as the top gainer, while the Technology sector (-1.6%) led laggards, mirroring the Nasdaq's weak performance.

 

  • Global Markets Review. Wall Street was closed overnight for the Thanksgiving holiday. European stock markets rebounded, ending higher after several days of decline on bargain hunting, while Asian markets closed mixed, amid South Korea's surprise interest rate cut.

 

  • Market Outlook. Local market sentiment remains fragile, weighed down by extended foreign funds net selling position. Volatility is expected to remain on fore, driven by the final batch of corporate earnings releases and uncertainties in the Middle East, as both parties violated the ceasefire agreement. However, the FBM KLCI index may attempt to find support from buying interest in the Finance sector, buoyed by better-than-expected results across several banking heavyweights. On the global front, investors will focus on China's Manufacturing PMI, set to be released later today. Additionally, bargain hunting in the Technology sector could emerge following yesterday's sell-off, supported by strong recent earnings reports. Meanwhile, the Energy sector may attract buying interest, driven by favorable US crude oil inventory data and developments in the Middle East tension.

     

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed a bearish engulfing candle to wipe off all its previous session gains and closed below SMA200 yesterday. Indicators remained mixed as MACD Line floated 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 

  • Tenaga Nasional Bhd’s net profit rose 85% to RM1.58 billion in the third quarter ended Sept 30, 2024 (3QFY2024) from RM856.2 million last year, thanks to hefty foreign exchange gains.

     

  • CIMB Group Holdings Bhd , Malaysia’s second-largest bank by assets, saw its net profit for 3QFY2024 rise nearly 10% to RM2.03 billion from RM1.85 billion a year earlier, thanks to healthy growth in both net interest income (NII) and non-interest income (NOII).

     

  • Axiata Group Bhd , the country’s largest telecommunications company by revenue, returned to the black with a net profit of RM976.67 million in 3QFY2024, against a net loss of RM797.41 million a year ago, as currency gains and other one-off items offset a decline in operating income. 

     

  • IHH Healthcare Bhd’s net profit for 3QFY2024 was flat at RM534 million, compared with RM532 million in 3QFY2023.

     

  • Genting’s 49.3% subsidiary, Genting Malaysia Bhd's reported a net profit of RM569.16 million, representing a near six-year high and an over threefold jump from RM177.41 million.

     

  • After four consecutive quarters of losses, Capital A Bhd posted a record-high net profit of RM1.64 billion for 3QFY2024, as opposed to a net loss of RM102.75 million a year ago, as the group recognised RM2.27 billion in foreign exchange gains compared with a forex loss of RM93.92 million in last year’s corresponding quarter.

     

  • Berjaya Corp Bhd posted a net loss of RM167.85 million for the three months ended Sept 30, 2024 (1QFY2025) against a net profit of RM111.08 million a year ago, dragged by its retail and services businesses. 

     

  • Supermax Corp Bhd extended its streak of losses to seven quarters with a net loss of RM64.6 million in the three months ended Sept 30, 2024 (1QFY2025).

     

  • Icon Offshore Bhd, which has proposed a name change to Lianson Fleet Group Bhd, posted a threefold jump in net profit to RM19.43 million in 3QFY2024 from RM6.21 million a year ago, on higher daily charter rates. 

     

  • Globetronics Technology Bhd  is partnering Canada-headquartered POET Technologies Inc on advanced manufacturing and testing of optical engines, designed for applications such as data centres and telecommunications.

Sentiment: Negative
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Market Mover
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EUR 4.675505 4.679374
CNY 0.611103 0.611560
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