Previous Day Highlights

FBM KLCI rebounded as bargain-hunting activities emerged particularly in plantation stocks. The benchmark index gained 0.41% or 5.99 points to close at 1,458.67. Gainers were led by KLK, PETDAG and SIMEPLT. Overall, market breadth was neutral with 466 decliners against 415 advancers while 424 were remain unchanged. Total volume stood at 2.99bn shares valued at RM1.90bn.

Key regional markets closed mixed as investors weighed on the rate hike decision from Federal Reserves. Nikkei 225 and STI advanced 0.25% and 0.18% to close at 28,309.16 and 3,245.27 respectively. Meanwhile, HSI and SHCOMP fell by 0.33% and 1.11% to finish at 20,534.48 and 3,285.10 respectively.

Wall Street retreated following Federal Reserve’s Chairman Jerome Powell suggested higher interest rates to combat inflation. The DJIA and S&P500 slumped 1.72% and 1.53% to end at 32,856.46 and 3,986.37 respectively, while the Nasdaq fell by 1.25% to finish at 11,530.33.

News For The Day

Cape EMS posts 40% rise in 4Q net profit ahead of listing

Cape EMS, which is slated to list on the Main Market of Bursa Malaysia has reported a 40.42% YoY climb in 4QFY22 net profit to RM8.93m from RM6.36m, on the back of increased sales of higher margin products. The electronics manufacturing services (EMS) provider’s revenue rose 17.34% YoY to RM118.2m from RM100.74m, driven by higher sales from wireless communication equipment and e-cigarettes. “The increase in revenue was moderated by a decrease in sales from EMS of point of sales terminals and household appliances, as well as a decrease in sales from die casting and machining operations,” the company said. -The Edge Markets

Maybank appoints Alan Lau as group COO

Malayan Banking (Maybank) has appointed Alan Lau Chee Kheong as group chief operations officer, effective April 1. Lau will be reporting to group president and chief executive officer Datuk Khairussaleh Ramli and is expected to oversee end-to-end industrialisation of transactional operation functions such as trade, credit and treasury with a focus on customer experience and interaction. -The Edge Markets

UMW Toyota Motor’s February sales up 37% to 9,297 units

UMW Toyota Motor sold a total of 9,297 vehicles in February, some 37% more than the 6,786 units sold in the prior month. This is the company’s highest-ever month-on-month sales performance. On YoY basis, the sales growth was even more impressive at 45%. YTD, the company's sales stood at 16,083 units, a 15% increase YoY. – The Edge Markets

Teladan Setia buys Negeri Sembilan land for RM24.1m

ACE Market-listed property firm Teladan Setia Group is acquiring freehold land in Negeri Sembilan for RM24.12m in cash. The land, measuring 70,020 sqm, is planned for mixed development. “This proposed acquisition is in line with our strategy of replenishing our land bank at locations with strong growth potential and to scale up our property development activities to generate long-term sustainable income,” it added. -The Edge Markets

Green Packet to sell 100% stake in OCIB for RM23m

Green Packet (GPB) has entered into a share sale agreement to dispose of 100% equity interest in Oasis Capital Investment Bank Ltd (OCIB) to WKJ Capital Equity SB for RM23m cash. GPB is a global technology company while WKJ Capital Equity was incorporated as a private limited company in Malaysia, the principal business of which is investment holding. -The Star

Our Thoughts

Wall Street closed sharply lower after Federal Reserves Chair Jerome Powell suggested that interest rate needs to go higher and longer, fuelling concerns that a larger rate hike during the next FOMC meeting on the 21 & 22 this month. As a result, the DJI Average lost 575 points while the Nasdaq declined by 145 points with the US 10- year yield inched higher at 3.97%. In Hong Kong, the HSI ended 69 points lower after a solid start as investors became wary of the escalating US-China tech rivalry after Beijing calls for self-sufficiency to counter sanctions by the US. On the home front, the FBM KLCI gained 6 points from broad-based accumulation of Banks, Plantation and Telco stocks. Nonetheless, we expect some headwinds on stocks today following the Feds rate commentary thus expect the index to trend between 1,450-1,460 range amid regional weaknesses. Meanwhile, Oil & Gas stocks should again see some selling pressure following the decline in crude oil prices attributed to inventory build-up that saw the Brent crude to close USD3 lower at USD83/barrel.

Source: Rakuten Research - 8 Mar 2023

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