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Market Review Market Scorecard

Malaysia:. The FBM KLCI (-0.1%) ended slightly lower in tandem with the mostly negative regional markets as the key index fell -1.4% WoW. The lower liners, however, extended their recovery, while the energy sector (+3.1%) rallied after taking cue from the elevated oil prices as well as better earnings expectation.

Global markets:. Wall Street retreated as the Dow (-1.0%) fell on concerns over the persistent inflationary pressure after the personal consumption expenditure data (+1.8% MoM) unexpectedly accelerates. The European stockmarkets also ended lower, while Asia stockmarkets ended mostly in red.

The Day Ahead

The FBM KLCI logged marginal losses after hovering mostly in the negative territory, taking cue from the negative biased regional markets. Following a sharp selldown on Wall Street in the previous week, we reckon the regional markets and the local bourse may stay rocky while investors could be looking out for fresh catalysts. Meanwhile, we believe the downside risk could be limited following the revised Budget 2023 as investors may trade in sectors that will benefit from it. Commodities wise, the Brent crude oil price remained solid above USD83 per barrel, while the CPO traded above RM4,200.

Sector focus:. The consumer sector may benefit from the revised Budget 2023 that focuses on addressing high cost of living. Renewable energy sector may also benefit from the revised budget. Besides, the commodities related plantation and energy sectors may gain momentum amid firm crude oil and CPO commodities prices.

FBMKLCI Technical Outlook

The FBM KLCI edged lower after recouping most of its intraday losses. Technical indicators remained negative as the MACD Histogram extended a negative bar, while the RSI hovered below the 50 level. Investors may monitor next support at 1,450, followed by 1,430 and the resistance at 1,500-1,510.

Company Brief

IOI Properties Group Bhd’s 2QFY23 net profit jumped 219.8% YoY to RM402.0m, lifted by significant improvement from the results of joint ventures. Revenue for the quarter, however, dipped 4.9% YoY to RM670.4m. (The Star)

Press Metal Aluminium Holdings Bhd’s 4QFY22 net profit grew 5.8% YoY to RM272.2m, following the commissioning of its Phase 3 Samalaju smelter. Revenue for the quarter rose 16.4% YoY to RM3.92bn. A fourth interim dividend of 1.75 sen per share, payable on 31st March 2023 was declared. (The Edge)

Digi.com Bhd's 4QFY22 net profit sank 85.9% YoY to RM42.8m, dragged down by non-recurring items related to the merger with Celcom. Revenue for the quarter, however, gained 38.0% YoY to RM2.18bn. (The Edge)

Heineken Malaysia Bhd's 4QFY22 net profit increased 9.2% YoY to RM104.6m, driven by efficiency gains through cost and value initiatives. Revenue for the quarter grew 14.4% YoY to RM791.7m. A third interim dividend of 19.0 sen per share was proposed. (The Edge)

Inari Amertron Bhd’s 2QFY23 net profit fell 12.8% YoY to RM93.6m, mainly due to lower revenue and unfavourable forex movements. Revenue for the quarter decreased 4.2% YoY to RM402.5m. A second interim dividend of 2.2 sen per share, payable on 6th April 2023 was declared. (The Edge)

Padini Holdings Bhd’s 2QFY23 net profit increased 20.1% YoY to RM73.1m, boosted by continued recovery from the pandemic. Revenue for the quarter rose 19.3% YoY to RM509.5m. A third interim dividend of 2.5 sen per share, payable on 31st March 2023. (The Edge)

Dutch Lady Milk Industries Bhd’s 4QFY23 net loss stood at -RM20.2m, from a net profit of RM183.5m recorded in the previous corresponding quarter, due to a RM17.9m one-off restructuring cost related to the optimisation of its dairy production operations in Petaling Jaya, and RM25.0m related to the 2018-2021 bilateral advanced pricing arrangement between the authorities of Malaysia and the Netherlands with regard to certain related party transactions. Revenue for the quarter, however, increased 20.4% YoY to RM361.7m. (The Edge)

Farm Fresh Bhd’s 3QFY23 net profit jumped 63.8% YoY to RM18.8m, amid higher revenue. Revenue for the quarter grew 39.0% YoY to RM162.2m. (The Edge)

Karex Bhd’s 2QFY23 net profit stood at RM2.0m vs. a net loss of -RM2.8m recorded in the previous corresponding quarter, on the back of higher commercial market orders and normalisation of raw material prices. Revenue for the quarter improved 24.2% YoY to RM128.5m. (The Edge)

Boustead Heavy Industries Corp Bhd’s 4QFY22 net loss widened to -RM28.1 vs. a net loss of -RM8.0m recorded in the previous corresponding quarter, mainly due to higher allowances on expected credit loss of RM32.2m and higher finance costs of RM5.1m. Revenue for the quarter fell 3.0% YoY to RM38.6m. (The Edge)

Pasukhas Group Bhd has proposed the consolidation of every 10 of its shares into 1 share. The proposed share consolidation will to improve the company’s capital structure and will not have any effect on the consolidated earnings of the group for the 18-month financial period ending 30th June 2023. (The Edge)

Source: Mplus Research - 27 Feb 2023