Previous Day Highlights

FBM KLCI reversed earlier losses to end marginally higher attributed to some last-minute buying activities last Friday. The benchmark index added a mere 0.04% or 0.67 points to close at 1,490.47. Gainers were led by KLK, PETDAG and HLFG. However, market breadth was negative with 510 losers against 443 gainers while 388 were unchanged. Total volume stood at 4.36bn shares valued at RM2.41bn.

Key regional markets mostly ended in negative territory following Wall Street overnight sell down except Nikkei 225 that advanced 0.67% to end at 27,693.65. HSI and SHCOMP both tumbled 2.02% and 0.76% to close at 21,222.16 and 3,238.70. Meanwhile, STI closed flat at 3,384.36.

Wall Street ended lower after an unexpectedly strong jobs report raised concern about Federal Reserve’s rate hike. The DJIA erased 0.10% to finish at 33,891.02. Meanwhile S&P500 and Nasdaq both slumped 0.61% and 1.00% to end at 4,111.08 and 11,887.45 respectively.

News For The Day

F&N's 1Q net profit more than doubled to RM199m

Fraser & Neave Holdings' (F&N) 1QFY9/23 net profit more than doubled to RM198m from RM92.95m YoY, mainly due to higher revenue. F&N's 1Q revenue increased 10% to RM1.22bn from RM1.11bn, mainly contributed by higher festive sales and exports from food and beverage (F&B) Malaysia and additional Cocoaland Holdings' contribution. -NST

Proton sales up 162% y-o-y in Jan 2023

Proton Holdings’ sales surged 162.3% YoY with 11,681 vehicles sold in January 2023, recording the best January sales since 2013. The national carmaker said its market share for the month was 22.9%, better than its market share of 19.6% for the whole of last year. -The Edge Markets

Tropicana Corp to sell another Johor land to KSL for RM21m

Tropicana Corp is selling a 10.85-acre land in Pontian, Johor, to KSL Holdings for RM21.27m. The original cost of investment for the freehold land in 2013 amounted to RM7.67m, adding that the expected gain from the disposal would be RM1.59m. – The Edge Markets

UEM Edgenta to explore partnerships in sustainable healthcare solutions

UEM Edgenta via its unit, Edgenta Healthcare Support, is exploring a series of collaborations to strengthen its position in the international healthcare business. The company said it has inked three separate memorandums of business exploration with WAS, First Ambulance Services and Optima Technic to embark on various healthcare projects.-The Star

Cypark gets nod to operate SMART waste-to-energy plant

Cypark Resources (CRB) will operate a solid waste modular advanced recovery and treatment waste-to-energy (SMART WTE) plant at Ladang Tanah Merah, Port Dickson in Negeri Sembilan. Its wholly-owned Cypark Smart Technology SB received the confirmation of feed-in-tariff commencement (FiTCD) from Sustainable Energy Development Authority (SEDA). The FiTCD is effective for a period of 16 years from commencement date of Dec 14, 2022. -The Edge Markets

Elsoft to start its medical device ops soon

Automated test equipment (ATE) manufacturer Elsoft Research is targeting to start the operations of its new medical device business by 1HCY23. “We will soon be able to deliver a few thousand control boards a year to both multinational (MNC) customers in Malaysia and overseas.” the group said.-The Star

Our Thoughts

Wall Street closed lower as traders became wary of rising bond yield amid some profit taking activities. The DJI Average lost 36 points while the Nasdaq erased 120 points as the US 10-year yield edged higher to above 3.64%. Over in Hong Kong, the HSI continued with its correction as it declined by 438 points on a weak corporate earnings outlook. On the home front, the FBM KLCI ended flat as sentiment remained cautious. However, we reckon bargain hunting may emerge anytime soon as the index was stuck within a consolidation phase over the past 3 weeks. Therefore, we expect some accumulation on the Telcos and Utilities stocks to emerge hence expect the index to trend between the 1,490-1,500 range today. Meanwhile, better demand had pushed crude oil prices higher to almost US$81/barrel

Source: Rakuten Research - 7 Feb 2023

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