Previous Day Highlights

FBM KLCI closed in positive territory as bargain hunting activities emerged amid the improving sentiment across the regional markets. The benchmark index advanced 0.34% or 4.74 points to close at 1,406.55. Gainers were led by NESTLE, PETDAG and CDB. Market breadth was positive with 483 gainers against 368 losers while 393 were remain unchanged. Total volume stood at 3.23bn shares valued at RM1.85bn.

Key regional indices ended mostly higher leveraged by the positive performance from Wall Street overnight. STI increased 1.09% to end at 3,173.93. Nonetheless, HSI and SHCOMP continue to rise 1.36% and 0.64% to close at 19,258.76 and 3,255.65 respectively. Meanwhile, Nikkei 225 was closed for Vernal Equinox Holiday.

Wall Street continued to end higher as sentiment buoyed by Treasury Secretary Janet Yellen’s reassurance containing the banking crisis. The DJIA up 0.98% to end at 32,560.60 whereas Nasdaq and S&P 500 added 1.58% and 1.30% to finish at 11,860.11 and 4,002.87 respectively.

News For The Day

Lotte Chemical’s unit secures loan for US$2.4bn petrochemical facility in Indonesia

A unit of Lotte Chemical Titan Holding (LCT) has entered into a loan facility of US$2.4bn (RM10.58bn) with the Export-Import Bank of Korea, Korea Trade Insurance Corporation and other commercial banks to fund the development works of an integrated petrochemical facility in Indonesia. LCT said its subsidiary PT LOTTE Chemical Indonesia (LCI) secured the 12- year term loan for a project known as the Lotte Indonesia New Ethylene (LINE) project. The construction of the LINE project is slated for completion in 2025.-The Edge Markets

Poh Kong posts lower 2Q profit amid gold price fluctuations

Dragged by a marginal decrease in revenue as well as gold price fluctuation, Poh Kong Holdings’s 2QFY7/23 net profit fell 12.49% YoY to RM25.68m from RM29.35m. 2QFY7/23 revenue slipped 0.64% YoY to RM403.84m from RM406.46m, mainly due to a decrease in demand for gold investment products. - The Edge Markets

Scientex makes maiden foray in Indonesia

Scientex has entered into a joint venture (JV) with Indonesia's Mustika Land and Japan's Creed Group, marking its maiden foray into building affordable homes in Indonesia. Scientex said its subsidiary Scientex Quatari SB (STX) had entered into a JV with PT Graha Mustika Tamansari and Creed Property PH-1 Pte Ltd to form a JV company. Phase 1 involves developing 400 affordable landed homes with an estimated gross development value (GDV) of US$19m (about RM85.5m). -NST

Khazanah's annual profit from operations rises to RM1.6bn

Khazanah Nasional's profit from operations increased to RM1.6bn in 2022, from RM670m in 2021, mainly due to monetisation activities and lower impairment in its portfolio. The Malaysian sovereign wealth fund said its net asset value (NAV), saw a decline of 5% YoY to RM81bn from RM86bn, because of the global market downtrend. Khazanah declared a dividend of RM500m for 2022 to the government of Malaysia.

-The Edge Markets

Dayang bags Awboat contract from PETRONAS Carigali

Dayang Enterprise Holdings has secured a contract from PETRONAS Carigali SB (PCSB) for the provision of accommodation work boat (AWBOAT). Dayang said its wholly owned subsidiary, DESB Marine Services SB was awarded the contract PCSB. “The contract duration is approximately 207 days from the commencement date effective from Feb 17 with an option to extend up to 90 days,” Dayang said. -The Star

Our Thoughts

Wall Street extended its relief rally yesterday as sentiment turned positive following Treasury Secretary Janet Yellen’s reassurance to safeguard against further banking crisis. Meanwhile, traders are also hoping a slower pace of rate hike from the FOMC today. As such, the DJI Average added 316 points while the Nasdaq jumped by 185 points while the US 10-year yield edged higher to 3.61%. In Hong Kong, stocks also improved with the HSI closing 258 points higher as concerns over the banking crisis eased from efforts by the US and Europe regulators to shore up confidence. Back home, the FBM KLCI ended slightly higher despite sentiment remains rather cautious amid the heightened volatility of global equities. For today, we expect the local bourse’s uptrend to continue buoyed by the positive performance on Wall Street, thus see the index to hover within 1,405-1,415 on persistent bargain hunting activities. With interests shifted back to equities, gold prices declined to below USD1,945/oz following a spike up over the past few days. As for crude oil price, the Brent crude recovered to above USD75/barrel as concerns over the banks receded.

Source: Rakuten Research - 22 Mar 2023

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