Rakuten Trade Research Reports

Daily Market Report - 2 March 2023

Publish date: Thu, 02 Mar 2023, 10:34 AM
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Previous Day Highlight

FBM KLCI trended lower for the sixth consecutive days as buying interest remained tepid despite the positive sentiment across the region. The benchmark index declined 0.27% or 3.99 points to close at 1,450.20. Losers were led by PETDAG, MISC and PETGAS. Market breadth was negative with 528 decliners against 436 advancers while 358 counters remain unchanged. Total volume stood at 3.21bn shares valued at RM2.04bn. Key regional markets were mostly in positive territory following bullish China factory activities reading. Nikkei225 advanced 0.26% to end at 27,516.53 while STI erased 0.23% to close at 3,255.08. Nonetheless, HSI and SHCOMP both jumped 4.21% and 1.00% to end at 20,619.71 and 3,312.35 respectively. Wall Street ended mostly lower amid cautious sentiment on the tightening monetary policy. The DJIA closed flat at 32,661.84, while the S&P 500 and Nasdaq fell 0.47% and 0.66% to end at 3,951.39 and 11,379.48 respectively

Our Thoughts

Wall Street closed mixed on concerns that the Federal Reserves may look at a steeper rate hike as price disinflation is losing steam in the US. Despite the DJI Average added 5 points, the Nasdaq declined by 76 points with the US 10-year yield edged higher to above 3.99%. Over in Hong Kong, the HSI broke out from its slump as it added 834 points on the back of strong economic data from China suggesting a strong economic recovery. As for the local bourse, the FBM KLCI fell to just above the 1,450 level despite the regional improvements. Though we expect bargain hunting activities to emerge anytime soon, overall sentiment remains fragile following the sell-down 2 weeks ago. We suspect investors are waiting for BNM Monetary Policy Committee meeting on 8 & 9 this month whether the OPR would be revised higher. For now, we are betting that BNM may refrain from hiking the OPR before the FOMC meeting on 21 & 22 March. Amid prevailing uncertainties, we reckon the index to trend between the 1,445-1,455 range today as the Banks and Telco stocks remain as our favourites.

News For The Day

KPJ sells Indonesian hospital operations
KPJ Healthcare has entered into a share sale agreement with PT Nusautama Medicalindo via three subsidiaries for the proposed disposal of its Indonesian hospital operations and facilities involving KPJ Medica for a total consideration based on an enterprise value of RM150.2m. The subsidiaries are Kumpulan Perubatan (Johor) SB (KPJSB), Crossborder Aim (M) SB (CAMSB) and Crossborder Hall (M) SB (CHMSB). The proposed disposal is part of its hospital operations restructuring in Indonesia necessitated by a challenging business environment, licensing and regulatory requirements imposed on foreign operators like KPJ. – The Edge Markets

YNH to sell KL, Perak retail assets for RM423m
Shareholders of YNH Property gave their nod for the disposal of Kiara 163 Retail Park here and AEON Seri Manjung in Perak for a total of RM422.5m in cash to ALX Asset. The disposal will help to pare down bank borrowings and add working capital requirements for the group, allowing to secure future funding required to finance the exciting projects within landbank as well as kick-starting the flagship project, Menara YNH. -The Edge Markets

Genetec proposes transfer to Main Market
ACE Market of Bursa Malaysia, Genetec Technology is now eyeing a move to the Main Market. The contract manufacturer of automated industrial equipment proposed a transfer to the Main Market to enhance the company’s credibility, prestige and reputation, as well as accord the group greater recognition and support amongst investors, in particular among larger institutional and foreign investors. -The Edge Markets

LGMS FY22 net profit climbs 12% on increased revenue
LGMS's FY22 net profit jumped 12% YoY to RM11.55m from RM10.32m thanks to more contracts secured for its cybersecurity services. FY22 Revenue stood at RM32.79m compared to RM28.26m YoY. The company declared a dividend of 1.3 sen per share after 4Q net profit amounted to RM3.24m against revenue of RM8.99m. -NST

MCT targets RM500m GDV with Taman Desa lands purchase
MCT has proposed to acquire three contiguous parcels of freehold residential land totalling 3.9 acres in Taman Desa, Kuala Lumpur for RM64.6m with an estimated gross development value of RM500m. The developer said the land is strategically situated at the fringe of Kuala Lumpur’s central business district in a matured and affluent. – The Star

Source: Rakuten Research - 2 Mar 2023

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