Previous Day Highlights

FBM KLCI retreated as market sentiment turned cautious ahead of GDP data this week. The benchmark index tumbled 0.95% or 14.09 points to close at 1,476.38. Losers were led by NESTLE, PETDAG and HLBANK. Market breadth was negative with 730 losers against 302 gainers while 359 counters remain unchanged. Total volume stood at 5.24bn shares valued at RM3.03bn.

Key regional markets closed on a mixed note after Japan reported stronger wage gains than expected. STI eased 0.15% to end at 3,380.84 while Nikkei 225 was flat at 27,685.47. Meanwhile, HSI and SHCOMP rose 0.36% and 0.29% to close at 21,298.70 and 3,248.09 respectively.

Wall Street ended sharply higher after Federal Reserve chairman statement of disinflation along with less aggressive interest rate adjustments. The DJIA gained 0.78% to finish at 34,156.69. Meanwhile S&P500 and Nasdaq both soared 1.29% and 1.90% to end at 4,164.00 and 12,113.79 respectively.

News For The Day

Kerjaya Prospek wins RM398m job

Kerjaya Prospek Group, via wholly-owned Future Rock SB, has accepted a letter of award from Tanjung Pinang Development SB (TPD) worth RM398m. It was for the construction of a temporary coastal protection structure for the proposed Seri Tanjung Pinang Phase 2B and 2C Development (STP2) at Tanjung Tokong in Penang. Construction works were expected to start on April 10 for 36 months. Kerjaya Prospek's order book including latest contract stood at RM4.7bn. -NST

Hartalega books 3Q net loss of RM32m

Hartalega Holdings, the world's largest nitrile glove maker, slipped into the red in the 3QFY23, with a net loss of RM31.91m compared to a net profit of RM259m YoY, on significant moderation in average selling prices (ASPs) and lower sales volume, along with higher energy and labour costs. The weak quarterly performance due to intensified competition in the glove sector, with softer sales demand owing to excess glove inventories and stock adjustment in the supply chain. -The Edge Markets

LPI Capital's 4Q profit rises 14% on increased investment income, lower provisions

LPI Capital posted a stronger 4QFY22 net profit of RM83.57m, up 14.4% YoY from RM73.07m, mainly contributed by an increase in investment income and a lower provision for fair value losses on investment. The group declared a second interim dividend of 35 sen per share, which amounts to a payout of RM139.4m, totalling the group's dividend payment for FY2022 is RM239m. – The Edge Markets

Aemulus slips into the red in 1Q as revenue drops 47%

Aemulus Holdings’ 1QFY23 has slipped into the red with a net loss of RM4.77m, compared to a net profit of RM4.53m YoY. Quarterly revenue dropped 47% to RM9.85m from RM18.58m, which the company attributed to cautious capital expenditure spending from customers who foresee a slowdown in the semiconductor industry, and deferment of delivery due to slowdown in customers’ expansion pace. -The Edge Markets

Willowglen secures RM11.92m contract in Singapore

Willowglen MSC has secured a contract worth RM11.92m for the comprehensive maintenance of fence intrusion detection system. Willowglen said its wholly-owned subsidiary, Willowglen Services Pte Ltd secured the contract from SP PowerAssets Limited, Singapore. The commencement date of the contract is on Feb 7 and will be completed by April 6, 2028.- The Star

Our Thoughts

Wall Street closed on a strong note as traders welcomed Federal Reserves chairman statement of disinflation along with less aggressive interest rate adjustments. As such, the DJI Average gained 266 points while the Nasdaq jumped by 226 points with the US 10-year yield ended higher to 3.68%. In Hong Kong, the HSI added 76 points on bargain hunting activities from mainland Chinese funds following recent downtrend that saw the index declined by almost 4% over the past few days. Back home, the FBM KLCI played catch-down as selling on the blue chips gathered momentum as the index closed broadly lower to below the 1,480 level. Nonetheless, we reckon bargain hunting activities should emerge anytime soon as the index is currently hovering at a 1-month low. Therefore, we reckon the index to possibly trend between the 1,480-1,490 range today with focus on the Banks which took a massive hit yesterday and Energy stocks buoyed by rebound in crude oil prices with the Brent crude hitting above US$84/barrel.

Source: Rakuten Research - 8 Feb 2023

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