Market Review

Malaysia:. The FBM KLCI (+0.2%) managed to defend the 1,500 level, owing to the eleventh-hour buying support in selected index heavyweights. Despite coming off from their intraday lows, the lower liners extended their decline, while broader market ended mostly higher, anchored by the plantation sector (+1.5%).

Global markets:. The US stockmarkets extended their winning streak as the Dow climbed 0.04%, boosted by the strong corporate earnings from Walt Disney. European stockmarkets also marched higher, while Asia stockmarkets closed mostly lower.

The Day Ahead

The FBM KLCI eked out marginal gains after recovering in the final trading hour, underpinned by the gains in plantation stocks. Despite the 2Q21 GDP grew by 16% YoY, BNM has revised the full-year GDP growth forecast lower to between 3-4% (as compared to previous forecast of 6-7.5%) and investors should have digested the downward revision of the numbers. While the non-essential activities in manufacturing, construction, mining and quarrying sectors are allowed to resume operation starting from today may lift investors’ sentiment, the fluid political developments may limit the upside potential in the stock market over the near term.

Sector focus:. As more sectors are allowed to re-open, investors may pinpoint the recovery theme sectors such as consumer related, building material and construction. Besides, plantation stocks may be in the limelight as CPO price is trading near the all-time high zone.

The FBM KLCI booked marginal gains as the key index found support above the daily EMA9 level. Technical indicators remained mixed as the MACD Histogram has extended a green bar, while the RSI continued hovering below the 50 level. The key index may continue to trade sideways with next resistance envisaged at 1,520, while the support is set around 1,480

Company Brief

MISC Bhd's 2QFY21 net profit jumped 79.9% YoY to RM538.8m, owing to improvements in its marine engineering, shipping and offshore business segments and lower forex losses. Revenue for the quarter grew 7.7% YoY to RM2.35bn. A dividend of seven sen per share, payable on 14th September 2021 was declared. (The Star)

NWP Holdings Bhd is looking to diversify into proptech under the leadership of executive director Datuk Seri Nelson Kee, who comes with vast experience in real estate. (The Edge)

Pentamaster Corp Bhd’s 2QFY21 net profit rose 5.5% YoY to RM17.9m, supported by sales growth across all segments. Revenue for the quarter grew 26.8% YoY to RM130.7m. (The Edge)

Paramount Corp Bhd has completed its first fintech investment by acquiring a 30.0% stake in Omegaxis Sdn Bhd, the holding company of Peoplender Sdn Bhd, the operator of peer-to-peer (P2P) financing platform Fundaztic. The 30.0% stake acquisition in Omegaxis is at RM13.7m. (The Edge)

Majuperak Holdings Bhd has entered into a land swap deal to dispose of four plots of its land valued at RM100.0m in Sungai Raya to the Perak State Economic Development Corporation (PKNP) in exchange for three pieces of land valued at RM140.0m in Hulu Kinta. The difference of RM40 m will be deemed as an amount owed by the group to PKNP. (The Edge)

Malaysian Bulk Carriers Bhd’s (Maybulk) 2QFY21 net profit stood at RM32.1m vs. a net loss of RM12.7m recorded in the previous corresponding quarter, supported by improved charter rates and redelivery of chartered-in vessels. Revenue for the quarter rose 37.3% YoY to RM53.6m. (The Edge)

Samaiden Group Bhd has inked 4 contracts worth RM22.8m with Malakoff Corp Bhd for the construction of rooftop solar PV systems. The construction will take place in Malakoff’s facilities in Melaka, Kedah, Shah Alam and Pahang. (The Edge)

Malaysia Airports Holdings Bhd (MAHB) saw further improvement in passenger volume at its airport in Turkey during July 2021, with 3.0m passengers vs. 2.2m in June. The improvement represents a return to pre-Covid-19 levels for the Istanbul Sabiha Gokcen International Airport (SGIA), which averaged just under 3.0m passengers each month in 2019. Meanwhile, the July 2021 passenger count in all of MAHB’s Malaysian airports rose to 261,000 from 187,000 in June 2021. This is however 80.1% YoY lower compared with the 1.3m passengers registered in July 2020. (The Edge)

Careplus Group Bhd’s 2QFY21 net profit jumped 190.2% YoY to RM105.1m on higher sales. Revenue for the quarter improved 109.5% YoY to RM249.1m. An interim dividend of 2.0 sen per share, payable on 15th September 2021 was declared. (The Edge)

KIP Real Estate Investment Trust (KIP REIT) plans to undertake a private placement to raise up to RM80.9m for the group’s future acquisitions. The private placement involves an issuance of up to 101.1m new units, representing up to 20.0% of the total number of 505.3m units issued to the independent investors to be identified at a later date. (The Edge)

Source: Mplus Research - 16 Aug 2021