Previous Day Highlights

FBM KLCI closed in negative territory in tandem with the downbeat regional markets. The benchmark index shed 0.09% or 1.30 points to close at 1,455.50. Losers were led by PETDAG, KLK and TM. Market breadth was negative with 532 losers against 338 gainers while 425 counters remain unchanged. Total volume stood at 3.09bn shares valued at RM2.19bn.

Key regional indices ended broadly lower taking the negative cue from Wall Street performance overnight. HSI and SHCOMP weakened 0.33% and 0.28% to finish at 19,943.51 and 3,258.03 respectively. Nikkei225 and STI erased 0.11% and 0.58% to end at 27,423.96 and 3,263.24 respectively.

Wall Street climbed after a worst weekly selloff. The DJIA was up 0.22% to end at 32,889.09, the S&P 500 increased 0.31% to end at 3,982.24 and the Nasdaq added 0.63% to end at 11,466.98.

News For The Day

Maybank’s 4Q earnings up 5.4% to RM2.17bn

Maybank recorded a 5.4% growth in 4QFY22 net profit as growth in net interest income and other operating income more than offset headwinds from higher provisions, impairments and overhead expenses. Maybank declared a second interim cash dividend of 30 sen. 4QFY22 Net profit rose to RM2.17bn from RM2.06bn, driven by a 15% growth in net interest income to RM3.52bn. – The Edge Markets

Public Bank’s 4Q net profit rises 24% to RM1.71bn

Public Bank’s 4QFY22 net profit grew 24.1% YoY to RM1.71bn or from RM1.38bn, as revenue rose 24.79% YoY to RM6.06bn from RM4.86bn. It declared a third interim dividend of five sen per share, amounting to RM970.53m, to be paid on March 22. This brings the bank’s total dividend payout for FY2022 to RM3.3bn, -The Edge Markets

TNB's FY22 earnings drop 5.4% to RM3.46bn

Tenaga Nasional's (TNB) FY22 net profit dropped 5.4% YoY to RM3.46bn from RM3.66bn due to higher finance cost and tax expenses. Tax expenses included Cukai Makmur for FY22 which amounted to RM340.8m. The board of directors has approved a final single tier dividend of 26.0 sen per ordinary share in FY22.-NST

MyEG FY22 net profit rises to RM398.70m

My E.G. Services’s (MYEG) FY22 net profit jumped 26.2% YoY to RM398.70m from RM316.01m. Revenue, however, fell 10.11% YoY to RM651.18m from RM724.41m due to lower demand for its quarantine services. It recommended a final dividend of 1.17 sen per share in FY22. – The Star

Kerjaya Prospek net profit rises 18.7% to RM114.90m in FY22

Kerjaya Prospek Group’s (KPGB) FY22 net profit rose 18.7% YoY to RM114.90m from RM96.96m attributed to the improvement in the progress of construction work activities and increased workforce with the inflow of foreign labour. The construction outfit has declared a second interim dividend of 2.0 sen per share for FY22, bringing the total dividend declared to date at 6.0 sen per share for last year. -The Star

Solarvest says 3Q earnings more than doubled to RM5.2m

Solarvest Holdings’ 3QFY3/23 net profit surged more than twofold to RM5.2m from RM2.01m YoY. Quarterly revenue also surged to RM101.5m, from RM47.44m YoY. The increases in Solarvest's top line and bottom line were attributed to the recognition of the construction progress of the fourth cycle of the large-scale solar (LSS4) projects. -The Edge Market

Our Thoughts

Wall Street staged a relief rebound following a dreadful performance of US equities last week amid a marginal decline in the US 10-year yield that closed at 3.92%. As such, the DJI Average added 72 points while the Nasdaq was also up by 72 points after a choppy session. Over in Hong Kong, the HSI lost 66 points to below the 20,000 mark or a YTD low as foreign funds continued with their sell-down. Sentiment has turned hesitant as about China’s economic recovery as investors are now looking at the “two sessions” meeting in Beijing, China from March 4 on hopes of more policy stimulus. Back home, the FBM KLCI pared earlier losses to close on a flat note thanks largely to some late buying on banking stocks. For today, we believe some bargain hunting activities to emerge soon as the benchmark index had fallen by 2.7% YTD depicting that local equities are trading at very reasonable valuations. We reckon the Banks, Plantation and Telcos stocks are ripe for accumulation. Reflecting the reverse in sentiment, the Ringgit had also weakened against the greenback currently at RM4.45/USD1.

Source: Rakuten Research - 28 Feb 2023