Previous Day Highlights

FBM KLCI erased earlier losses and closed in positive territory as bargain hunting emerged during the final minutes of trading. The benchmark index added a mere 0.04% or 0.58 points to close at 1,475.17. Gainers were led by NESTLE, TENAGA and PETDAG. However, market breadth was negative with 590 decliners against 349 advancers. Total volume stood at 3.70bn shares valued at RM2.05bn.

Key regional indices ended mostly lower ahead of the US consumer price index except SHCOMP which rose 0.72% to close at 3,284.16. Meanwhile, Nikkei 225, STI and HSI declined 0.88%, 1.07% and 0.12% to finish at 27,427.32, 3,324.70 and 21,164.42 respectively.

Wall Street closed sharply higher ahead of the US consumer-price index data out later today. The DJIA and SP500 both soared 1.11% and 1.14% to end at 34,245.93 and 4,137.29 respectively. Meanwhile, Nasdaq jumped 1.48% to finish at 11,891.79.

News For The Day

MMHE secures RM1.4bn contract from Carigali-PTTEP

Malaysia Marine and Heavy Engineering Holdings' wholly owned subsidiary Malaysian Marine and Heavy Engeering SB has secured a contract from Carigali-PTTEP Operating Company to provide wellhead platforms and subsea pipelines for the Joint Development Area Field Development Project. The contract, which has a value of about RM1.4bn, will run for about 22 months. -The Star

Pesona Metro unit wins RM948m turnkey contractor job

Pesona Metro Holdings said its unit has won a turnkey contractor job worth RM948.13m from Danau Lumayan SB for a residential property development project. The project consists of a development of 3,438 residential houses in Bandar Tun Razak. The phase one and phase two of the project shall be completed within 36 months, it said – The Star

Lagenda Properties buys RM398m Johor land

Lagenda Properties, via its 70%-owned indirect subsidiary Lagenda Mersing SB, has purchased a piece of land worth RM398.2m in Kulai, Johor. The company said it acquired the 1,075.48-acre land from the wholly-owned subsidiary of Permodalan Nasional, Seriemas Development SB. The company intends to use its newly acquired asset to develop a large-scale affordable township that encompasses 12,000 residential units and a mix of commercial development. The project has an estimated gross development value of RM4bn.- The Star 

Tambun Indah Land’s 4Q earnings fell 58%

Property developer Tambun Indah Land’s 4QFY22 net profit fell 57.44% YoY to RM12.15m from RM28.55m. Revenue likewise declined by 49.84% YoY to RM53.93m from RM107.52m due to lower net property sales and fewer ongoing projects, and the group adopted a cautious approach for new property launches given the overall market condition. -The Edge Markets

Higher profit from associates boosts Guocoland Malaysia 2Q profit

Guocoland (Malaysia)'s 2QFY23 net profit more than doubled to RM8.53m from RM3.76m YoY, driven by higher share of associates and joint ventures' profit, coupled with wider profit margin in two property development projects in Cheras. Revenue drop 27% YoY to RM76.88m from RM105.55m, no thanks to fewer ongoing projects after delivery of vacant possession for the two Cheras projects in the previous quarter.-The Edge Markets

Our Thoughts

Wall Street rebounded ahead of the crucial consumer price index data to be out later today as traders are betting that inflation may be peaking and a possible pause of aggressive rate hikes by the Federal Reserves. The DJI Average was up by 377 points while the Nasdaq added 174 points as the US 10-year yield eased slightly to 3.7%. In Hong Kong, the benchmark HSI closed 26 points lower as sentiment turned cautious on the escalating tension between the US and China as the Biden administration sanctioned 6 Chinese companies following the balloon incident. Back home, the FBM KLCI ended flat due to some last-minute buying activities as market undertone remains sluggish. The market is seen directionless today due to lack of fresh catalysts hence we expect the index to hover between the 1,475-1,480 range. Buying interests may return to Tech related stocks after a sell-down yesterday.

Source: Rakuten Research - 14 Feb 2023

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